Key takeaways
- The lock-in effect: owners with rates near 3% are not selling because a new loan costs far more each month.
- Example: a $350,000 loan costs about $1,500 a month in principal and interest at 3.2% and about $2,250 at 6.7%, roughly $750 more.
- Anderson County new listings are flat versus last year: 1,040 so far in 2026 against 1,046 at this point in 2025.
- Listings over the past 12 months were about 5 to 8 percent below the yearly totals of 2018 and 2019.
- Nobody knows when rates will fall; if they do, held-back sellers could list at once.
You have probably heard someone say "nobody is listing because they do not want to give up their low rate." That is true. Let me explain why and what it means for you.
The Lock-In Effect
Between 2020 and 2022 millions of homeowners refinanced or bought at rates between 2.5% and 4%. Those rates were historically low. We may never see them again.
Here is what that means in real numbers (rates as of when this was written in October 2026). If you bought a $350,000 house in 2021 at 3.2%, your payment was about $1,500 a month for principal and interest. If you buy that same house today at 6.7%, the payment is about $2,250. That is $750 more per month for the same house.
People do not voluntarily take a $750 payment increase. So they stay put. That is the lock-in effect.
| Principal and interest | Per month |
|---|---|
| $350,000 loan, 3.2% (2021) | about $1,500 |
| $350,000 loan, 6.7% (today) | about $2,250 |
| Difference | about $750 |
What It Means for Anderson County Inventory
Anderson County has the same problem as everywhere else. The people who would normally sell and move up or downsize are staying in their houses because leaving costs too much. That keeps inventory tight even when demand softens.
New listings in Anderson County are flat compared with last year: 1,040 so far in 2026 against 1,046 at this point in 2025. Over the past 12 months there were about 1,206 new single-family listings, roughly 5 to 8 percent below the 1,268 listed in 2018 and the 1,307 listed in 2019. The market is not flooded. It is just not as empty as it was a couple of years ago.
Source: ETR MLS, Anderson County single-family listings, through October 27, 2026.
What It Means for Buyers and Sellers
If you are buying, you need to know that inventory is still tight by historical standards. You cannot wait forever on the perfect house. When a good one comes up in the right price range you need to move.
If you are selling, you need to know that the buyers out there are serious. They are not browsing. They have accepted the 6.7% rate and they are looking anyway. Price your house right and it will sell.
Nobody knows when rates will come down. If they do, a lot of pent-up inventory will hit the market at once. That might be a better time to buy. It might also mean more competition. Right now the math is what it is. Work with it.
Common questions
What is the mortgage lock-in effect?
It is when homeowners with a low mortgage rate stay in their homes because buying another house at today's rates would raise their monthly payment too much. It keeps fewer homes on the market.
How much more is a 6.7% mortgage than a 3.2% mortgage?
On a $350,000 loan, principal and interest is about $1,500 a month at 3.2% and about $2,250 a month at 6.7%, a difference of roughly $750 a month. Taxes and insurance are extra.
Is there enough inventory in Anderson County?
Not by the standards of 2018 and 2019. Over the last 12 months there were about 1,206 new single-family listings, compared with 1,268 in 2018 and 1,307 in 2019.
Should I wait for rates to drop before buying?
Nobody knows when rates will come down. If they do, held-back inventory could hit at once, which might mean a better selection and more competition. We can run the numbers for your situation.