The pandemic created an unusual period for housing. Mortgage rates fell to historic lows, remote work gave people more freedom to choose where they lived, and many households wanted more space. Buyers moved into larger homes, suburbs and places farther from work. Demand rose quickly while the supply of homes remained limited, and prices followed.

Many of the people who bought or refinanced during that period also locked in mortgages that would become extremely valuable a few years later.

Then rates rose

When interest rates increased in 2022, the housing market changed from both directions. Buyers could afford less because their monthly mortgage payments were much higher. Existing homeowners had the opposite problem: many were sitting on mortgages around 3% or 4%, and selling meant giving up that financing and replacing it with a much more expensive loan.

That gave millions of homeowners a strong reason to stay where they were. Federal Reserve research found that mortgage lock-in explained 44% of the decline in mobility among mortgage borrowers from 2021 to 2022.

The result was a standoff. Buyers wanted lower prices because financing had become more expensive. Sellers often refused those prices because they had cheap mortgages, substantial equity and no urgent reason to move.

Sellers could wait

Some homeowners still wanted to sell. People change jobs, retire, divorce, downsize or move closer to family. Others bought homes during the remote-work period that no longer fit their daily lives as offices reopened and commuting became important again.

But wanting to sell and needing to sell are different things. A financially comfortable homeowner could put a house on the market, see what buyers were willing to pay and simply walk away if the offers were too low.

That began happening frequently. In April 2026, 5.8% of U.S. home listings were taken off the market, tied with December 2025 for the highest share since March 2020. Redfin said many sellers were withdrawing homes because they were sitting too long or buyers would not pay the price they wanted.

A delisting tells us something that a sales price cannot. It often means the seller looked at the current market and decided that keeping the house was preferable to selling at the available price.

Waiting became less attractive

By summer, seller behavior was changing. Realtor.com reported that delistings were 8.3% lower than a year earlier in June and 4.7% lower in July. Asking prices were also falling, and more sellers were starting closer to the price buyers were willing to pay instead of listing high and cutting later.

There are several reasons a homeowner who could wait might eventually decide to sell. Carrying a property costs money. Taxes, insurance, maintenance and mortgage payments continue. Some owners want to free up cash, downsize or move. Others may simply become less confident that waiting another year will produce a better price.

A seller does not have to be in financial trouble for the calculation to change. Waiting becomes less attractive when the future starts looking less certain.

That may be what we are beginning to see. Some owners who were comfortable saying “I’ll wait” are now asking whether waiting another year could leave them in a worse position.

Buyers have their own problem

The timing may be difficult for those sellers.

The average U.S. 30-year mortgage rate reached 6.95% on September 17. Higher rates increase monthly payments immediately and reduce how much buyers can afford.

The current energy shock creates another source of uncertainty. Diesel prices have reached record levels globally, and higher transportation and energy costs can feed through the economy. Inflation remains above the Federal Reserve’s target, and the Fed has already raised rates again this month.

If borrowing costs remain high or rise further, some buyers will postpone purchases. Others will reduce what they are willing to offer. Cash buyers and buyers with strong finances can remain active, but the overall pool of buyers can shrink.

A different housing market

This creates a difficult combination. Some sellers are becoming more willing to accept today’s market just as buyers may become less willing or less able to participate in it.

That gives the buyers who remain more negotiating power. Sellers with enough money and flexibility can still decide to wait again. Sellers who need or genuinely want to move have less room to do that and may have to accept lower prices.

The housing market is still working through decisions made during the era of easy money. Cheap mortgages encouraged people to buy and gave existing homeowners a reason to stay. Higher rates weakened buyers and helped create years of resistance between the two sides.

Now that resistance is beginning to change. Fewer sellers are walking away, but the economy is giving buyers new reasons to hesitate.

After several years in which many homeowners could afford to wait, the next part of the housing adjustment may depend on how many still can.