JACKSON, Miss. (WJTV) – High interest rates implemented by the Federal Reserve could be the reason why some people don’t want to sell their homes or the reason why some are having a hard time purchasing a home.

State Economist Corey Miller said the interest rate increases put in by the Federal Reserve in May 2022 has played a role in decreasing demand in the housing market. He said the high interest rates have decreased the supply of homes.

“Interest rates have continued to going up. More and more people, who might be interested in selling their current home, don’t want to get out of their current mortgage with the relatively low interest rate. So, that has limited the supply of existing homes available to sell and let the price increases and also price increases for new construction as well,” said Miller.

Miller said people holding onto low interest rates for their current homes and new construction being affected by high interest rates has caused a tight housing market.

He said it could be second half of 2024 before we start seeing cuts on interest rates.