The future of the U.S. housing market, as contextualized by trends in various other Western markets, is shaped significantly by the "lockin effect" that has ensued following the sharp increase in interest rates in the post2020 period. This phenomenon, characterized by a reluctance of homeowners to sell their properties due to the higher costs associated with obtaining new mortgages at increased rates, is a pivotal factor influencing market dynamics. Similar patterns observed in countries like Canada, the UK, and Australia offer a comparative lens through which we can understand potential trajectories and adaptations in the U.S. market.

Ben Carlson Blog & Article
https://awealthofcommonsense.com/2023...