Match severely weakened demand due to the sharp rise in mortgage rates with a relentlessly low supply of homes, and the result is a substantial slowdown in housing that still favors sellers. It does not mean that housing is in crisis and that values will plummet. Homeowners are not moving because they simply do not want to sell as they are locked into an incredibly low fixed mortgage rate. 72% of all homeowners have a mortgage rate at 4% or lower. 55% have a rate at 3.5% or lower. 34% have a rate at 3% or lower. They may not be in love with their home, but they certainly are in love with their loan. Another factor that has contributed to the diminished supply is that many sellers who have been unable to sell have decided to pull their homes off the market. The giant drop in demand is being matched up against an extremely anemic supply of available homes. There are fewer buyers participating today, just as there are fewer homeowners participating. This will continue until mortgage rates shift either higher or lower. Until then, the battle between supply and demand continues.