The mortgage 'lock-in effect' could worsen wealth inequality and is likely to last for years to come, FHFA says

• High mortgage rates could end up freezing the housing market for a long time, according to the FHFA.
• Unless rates fall dramatically, the mortgage "lock-in" effect could last for years, researchers warned.
• That could result in higher home prices and greater wealth inequality, the agency said.

The mortgage rate "lock-in" effect — the phenomenon that's frozen over the US housing market and vaulted home prices higher — could end up lasting for years to come, according to the Federal Housing Finance Agency.