A huge wave of housing inventory hit the market in February as the 'lock-in' effect eases

• Zillow reported that a wave of new inventory hit the market in February.
• New listings of existing homes on Zillow jumped 21% year-over-year last month.
• The data suggest the "lock-in" effect and frozen housing market are softening.

High mortgage rates, elevated home prices, and tight inventory have kept many Americans sidelined from the housing market since the pandemic.

However, the "lock-in" effect — current owners being unwilling to move or refinance at higher rates — is showing signs of easing as more sellers begin to put their homes up for sale. Zillow data out Thursday showed new listings of existing homes jumped 20.8% in February compared to the same time in 2023, and climbed 20.3% month-over-month.