US Housing Market Locked in Gridlock as High Mortgage Rates and Low Supply Freeze Transactions

The US housing market is experiencing a severe freeze, with prospective buyer traffic plunging to levels last seen during the 2008 financial crisis amid 6.7% mortgage rates and a $400,000 median home price.
Despite collapsing demand, home prices remain sticky because homeowners locked into sub-3% mortgages refuse to list their properties, freezing supply alongside demand and choking overall transaction volume.
Market affordability remains gridlocked, with industry watchers noting that a meaningful thaw will likely require a substantial decline in mortgage rates—leaving the Federal Reserve caught in a policy box regarding monetary easing.