America’s housing market has entered a period of recalibration after the frenzy of recent years. While the acute shortages and bidding wars have mostly cooled, affordability remains a stubborn challenge. Home prices are still hovering near record highs, though their growth has slowed significantly, now trailing general inflation on average rather than outpacing it. Meanwhile, interest rates have stabilized but remain elevated compared to historic lows, continuing to exert pressure on borrowing costs for aspiring buyers.
While existing homeowners have largely benefited from high prices in the form of equity gains, they also face their own set of challenges. For one, many are effectively “locked in” to their homes, having secured low-interest mortgages before rates began climbing. For these homeowners, relocating often means choosing between downsizing to a less expensive property or absorbing significantly higher monthly payments on a new loan.
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