Mortgage rates above 7% might not be enough to crack home values if owners hold the line. Stubborn sellers refusing to lower prices are the last factor supporting home prices despite high borrowing costs. Homeowners are choosing to stay put rather than sell at a loss or accept lower offers, creating a supply shortage that prevents prices from falling.
This seller resilience is counteracting the typical downward pressure from elevated mortgage rates. The dynamic suggests a stalemate in the housing market where neither buyers nor sellers are willing to compromise. As long as owners hold firm on asking prices, home values may remain elevated even in a high-rate environment.
The situation highlights how seller behavior can override traditional market mechanics driven by financing costs.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing