The Lock-in Effect

The lock-in effect refers to homeowners choosing to stay in their homes due to rising mortgage rates, as they have a low interest rate locked in.  This phenomen reduces housing supply.  The impact of the lock-in effect on buying a home is limited inventory and higher prices, which  may make it difficult for homebuyers to find suitable housing.  With a rate pause signalled in Canada it will be interesting to see if more home owners choose to list their homes this spring.  If you have questions about listing feel free to connect, we are happy to help you navigate the process of buying or selling a home.

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What is the Lock-In Effect?