Higher mortgage rates are discouraging buyers and sellers, and slowing market activity along the way across the Denver metro, according to a Denver Metro Association of Realtors May market trends report.There's a lot of fatigue going on, and specifically due to interest rates, Denver has seen a pretty typical 6% average price appreciation, but the last couple of years it's been relatively flat. However, that's just kind of made up for the fact that during the pandemic we saw huge appreciation gains, said Heather O'Leary, a realtor and a member of the Denver Metro Association of Realtors market trends committee.Watch more of Micah Smith's interview with Heather O'Leary on the current housing market in the video below. New report finds Denver metro home buyers and sellers experiencing 'unattainability fatigue'OLeary said from May 2017 to May 2026, the median sale price grew from $382,000 to $615,000, a 6% average annual increase that mirrors the market's long-run historical norm.A median home in the Denver metro area could cost 87% more than it did in 2020 and so buyers are exhausted. That's where we get the term affordability or unattainability fatigue, because it's just difficult for them to jump into something. And then sellers are honestly exhausted as well, because they don't want to have to drop their prices, O'Leary said.According to the report, closed sales fell nearly 7% year-over-year, attached-home sales dropped almost 18%, and new listings declined more than 17%. However, the report found the luxury market is outperforming the broader market.Luxury buyers are definitely less affected by interest rates, and we've seen 3.1% increase year-over-year in pending sales, and about 5% in closed sales, and that's really because luxury buyers are less affected by interest rates, because they have more flexibility, potentially more cash and equity in a home, OLeary said.The DMAR Market Trends Committee releases reports monthly, including data for Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park counties. ...read more read less