Definition
The reluctance of homeowners with below-market mortgage rates to sell, reducing housing inventory.
Example
The lock-in effect kept listings unusually low even as demand softened.
Related terms
Frequently asked questions
What does Lock-In Effect mean in real estate?
The reluctance of homeowners with below-market mortgage rates to sell, reducing housing inventory.
How is Lock-In Effect used in practice?
The lock-in effect kept listings unusually low even as demand softened.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.