The housing market has been stuck in low gear since the buying spree of the pandemic. Apollo's top economist shows why that's not likely to change soon.

US mortgage rates near 6.7% are keeping homeowners locked into cheap 3% loans, hurting home sales and delaying the US housing market recovery.

Analysts tie mortgage rates near 7% to Fed inflation concerns and Treasury buyback plans, with conforming at 7.06% and jumbo at 7.26%.

VA loans — mortgages backed by the U.S. Department of Veterans Affairs — are designed to help veterans and active service members become homeowners. These loans require no down payment, have lower interest rates than conventional loans and don't need private mortgage insurance if you put less than 20% down.

The probability of changing residence over the next 12 months has fallen to a record-low 13.5%, according to data highlighted in Apollo’s (NYSE:APO) latest U.S. housing outlook, as high mortgage rates keep homeowners locked into cheaper loans.

A survey released in July by Neighbors Bank found that 45% of potential buyers believe the 30-year fixed mortgage rate is higher than it actually is and just 35% correctly identified where the benchmark stands.

The expectation had been for falling rates this year, but the war with Iran and its resulting rise in oil prices upended that.