Millions of homeowners refinanced mortgages during the pandemic, locking in superlow mortgage rates. That wave of refinancing is now gnarling the Federal Reserve’s inflation fight by squeezing inventory and propping up the prices of homes for sale.
Mortgage rates have more than doubled since early 2022, when the Fed started raising interest rates to tackle inflation, and homeowners today don’t want to relinquish their 3% mortgages, or can’t afford to. That means they are staying put in current homes instead of considering…
Source: wsj.com