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.
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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.