Impact of Rising Interest Rates on Housing Market in America

Interest rates in America have risen, pushing mortgage rates to their highest in four decades. Despite expectations, house prices have been rising, making it difficult for people to enter the housing market. Normally, when interest rates go up, house prices go down, but this time, that's not happening. Mortgage costs have more than doubled in the past three years, yet housing prices have remained high. This is because many people locked in low mortgage rates and do not want to sell their houses and give up their favorable deals. As a result, the volume of home sales has significantly decreased, leading to a lower inventory of available housing. Demand has decreased, but supply has also decreased by a similar amount.