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Mortgage rates just hit 7.40%. Ouch. More than 90% of people with a mortgage are sitting on a cheaper one. So NOBODY moves. ✅ Freddie Mac on Thursday: 7.40% on the 30-year. A year ago: 6.30%. That's 7 straight weeks higher. ✅ Goldman: rates are up more than 1 point since February. Over 90% of borrowers now hold a loan below the market rate. ➡️ Moving means trading a cheap loan for an expensive one. Who signs up for that? Nobody. ➡️ Fewer homes for sale. Fewer buyers who can qualify. The market freezes before it breaks. 😇 The pain will be most acutely felt in overbuilt markets. ➡️ But frozen is NOT the same as falling. Location decides who gets hosed. 😇 The best performing and most liquid real estate tends to be where jobs are and where people want to live. ➡️ My view: yields eventually come down. That lifts home values. It does NOT make homes affordable. Sorry. ➡️ Real estate you own today? 😇 I wouldn't be surprised that in 15 to 20 years that's double. 🚨 The risk: rates stay up here longer than anyone expects. A long enough freeze cracks the weakest markets first.