Mortgage rates top 7% but home prices prove hard to move
Broker Samantha Shelton, president at Align Lending in the US, previously told Mortgage Professional America: “By 2026 I anticipate more inventory as rate-locked sellers regain confidence, steadier and more predictable buyer demand, wage growth continuing to help affordability and a balanced market that feels less volatile than recent years.”
What the lock-in effect means for brokers today
Supply dynamics remain central to why home prices have resisted rate pressure. Pandemic-era homeowners who secured rates well below 4% have been reluctant to sell, constraining inventory even as buyer demand softens.
Michael A. Harris, president and CEO of United Mortgage Corporation of America, said that the lock-in effect is shaping client behavior in ways that may not serve borrowers’ long-term interests.
“Rate lock-in continues to influence homeowner decisions, particularly among borrowers who secured mortgage rates below 4%. The challenge is that the decision is often being made based on the interest rate alone, rather than the homeowner’s complete financial picture,” he said.
Harris added: “Meaningful improvement requires a combination of better affordability, adequate inventory, realistic seller expectations, and financing solutions that fit borrowers’ actual needs.”
