Excess demand and historically low mortgage rates drove the housing market until around 2023. The peak in housing demand, much like in equities or commodities, eventually lost momentum as mortgage rates climbed and affordability deteriorated. Even as longer-term bond yields and mortgage rates have slightly pulled back, with average 30-year mortgage rates near their lowest point in over three years, they remain elevated compared with the ultra-low era of the early 2020s. Combined with mortgage rates above long-term averages and elevated property taxes and insurance, the effective cost of homeownership has climbed faster than incomes for many. It is almost difficult to call this a buyer’s market as no one feels they are walking away with a great deal.