Interest rates for home loans have risen dramatically from their historic lows in the 3% range. Rates near 7% are common in 2023.  Compared to the last 30 year average, 7% is not out of line.

The rise in rates have caused a “golden handcuff” effect – people who have low rate mortgages are reluctant to sell and take on a higher rate. They stay put, which reduces the available inventory of homes for sale.  Low inventory supports higher prices.