With high prices and high down payments interacting with mortgage rates still topping 7% for a 30-year fixed loan, it's a tough market for those looking for their first house. But "the headwinds disproportionately impacting the affordability of homeownership are proving to be the SFR market's tailwinds," says Moody's Analytics CRE.

"The inevitability of increased interest rates as the Federal Reserve's main monetary policy tool to manage persistent inflation and return to price stability inevitably has led the weekly 30-year fixed mortgage rate average in the US to a 20+ year high," the firm said. 

The current conditions have made the existing home market "extremely tight." Those who might otherwise think of selling their own homes face two potential problems. One, they likely have low mortgage rates, and that cheap debt won't be available if they move. Second, close to record prices, even with some drops, and high mortgage rates make properties more expensive, and the current owners realize that they might not be able to get the prices they want. That reduces inventory and keeps upward pressure on prices.