I made a Reddit post about this theory a few days ago. There are so many people who bought houses or refinanced in the past couple years at 3% or less, unless life absolutely makes them…they are not going to sell their house and give up their 3% loan just to go buy another with a 5% loan. Other people who have been in their homes for awhile and maybe don’t owe much…are going to stay put because the prospect of moving to a new or larger home and getting a high mortgage rate is not attractive. This is going to cause a lack of new listings in a lot of markets. Especially in the first time lower price category. The competition for the few that do come up for sale is going to get even worse, driving up prices more.