In this segment of Worldwide Exchange on CNBC,  Brown Harris Stevens CEO Bess Freedman, discusses the impact of rising mortgage rates on the U.S. housing market.

With 30-year fixed rates hovering just under 7%, the market is feeling the strain, particularly during the critical spring selling season. Freedman highlights that while inventory levels have risen, buyer sentiment—especially among first-time homebuyers—is dampened due to affordability challenges and economic uncertainty.

She notes that both buyers and sellers are beginning to accept that ultra-low rates are a thing of the past, but new home construction remains hindered by high material costs and labor shortages.

"Sellers and buyers are starting to understand and recognize that the rates that were two and 3% are gone… five, 6%, 7% is where mortgage rates are going to be for some time." - Bess Freedman