The U.S. real estate market remains stalled by the "mortgage lock-in" effect, with millions of homeowners reluctant to sell their properties and give up the low interest rates below 3-4% secured during the pandemic, instead facing today's 6-7% loan rates. This has resulted in approximately 1.7 million properties failing to close, tight inventory, and persistently high home prices. This deadlock has frustrated both sellers and first-time homebuyers alike, with sellers withdrawing their listings, and the share of first-time homebuyers plummeting to a historic low near 21% in 2025. Only a decline and stabilization of interest rates could potentially catalyze a market recovery, though affordability challenges are likely to persist.