The 30-year mortgage rate has climbed to roughly 7.5%, up from about 3% five years ago, making housing the least affordable it has been in 40 years. Many homeowners locked into cheaper mortgages are reluctant or unable to move, freezing transaction activity across the residential market.

The slowdown has rippled across housing-related stocks. Homebuilders Lennar and KB Home have declined, while retailers Home Depot and Lowe's both hit fresh 52-week lows on Wednesday. Fewer home sales also mean less spending on appliances, furniture and renovations, pressuring stocks like Whirlpool, which also hit a 52-week low Wednesday.

High interest rates, geopolitical uncertainty and political opposition are weighing on stocks across industries. The U.S. housing market remains mired in a multiyear period of sluggishness, and capital markets activity has slowed alongside it.

Smart ring maker Oura postponed its planned $2.2 billion IPO. Inspire Brands, parent of Dunkin Donuts and Buffalo Wild Wings, shelved its own offering. Shares of Morgan Stanley and Goldman Sachs both declined roughly 12% in September and set their highs for the year in July.

Even the data-center industry faces new obstacles as political concerns around electricity costs and other impacts threaten to slow development. The stakes are raised by this being a midterm election year, with Democrats and Republicans vying for control of Congress.

An end to conflict could push oil and inflation lower, potentially prompting the Federal Reserve to take another interest rate hike off the table and unleashing a stock rally, CNBC's Jim Cramer said Wednesday. If the economy starts to thaw, he said, investors could see a rally across frozen markets.