Mortgage rate paradox: homeowners sitting on ~4.2% fixed rates while new borrowers face ~6.2% for 30-year mortgages. That's a 200 basis point gap—the widest spread on record.

Think about it from a rational actor perspective. If you lock in at 4.2% and refinance means jumping to 6.2%, you're essentially paying an extra 3% annually to move. For most households, that math doesn't work. The result? Existing homeowners are glued to their properties, creating severe supply-side friction in the housing market.

This cascading effect reshapes consumer behavior: less mobility, tighter liquidity in real estate, and shifted capital allocation patterns across traditional and alternative asset classes.