A total of 85.7% homeowners with mortgages, roughly six out of every seven households, have an interest rate below 6%, according to a data report from Redfin (NASDAQ:RDFN). This is down from 90.6% at the start of last year and from the record high of 92.8% in mid-2022.
Redfin noted that 76.1% of homeowners have a rate below 5%, down from a record 85.6% in the first quarter of 2022, while 57.4% have a rate below 4%, down from a record 65.3% in the first quarter of 2022, and 22% have a rate below 3%, down from a record 24.7% in the first quarter of 2022.
Redfin added these percentages continue to reinforce the lock-in effect that is keeping is homeowners from selling their properties, thus exacerbating the shortage of homes for sale.
“I have a dozen or so homeowners who would like to sell but aren’t willing to give up their 3% interest rate for one that’s more than twice as high,” said Blakely Minton, a Redfin Premier real estate agent in Philadelphia. “Many of those sellers will list if rates get back down to 5%.”
Redfin’s data comes from the Federal Housing Finance Agency’s National Mortgage Database as of the first quarter of this year, the most recent period for which data is available.
Absolutely!! No sense selling to achieve less! A no brainer!!
I agree Pam! Who sells to achieve less?
Plus, the Residential Capitol Gains Tax rate needs to be adjusted (downward) to reflect the reality of home prices.
Mortgage or no mortgage, I have neighbors and clients who will not diminish their equity and standard of living.