U.S. home prices showed minimal growth in April 2026, with many markets experiencing declines. High mortgage rates compared to existing low-rate loans create a "rate-lock effect," discouraging homeowners from selling due to increased monthly payments. This limits housing supply, keeping prices high despite cooling demand. Homeowners hold record equity but access it mainly through second liens like HELOCs, as refinancing or selling is costly. A drop in mortgage rates or natural expiration of low-rate loans may ease this lock-in, potentially boosting market activity.