Many Homeowners Still Hold Ultra-Low-Rate Mortgages from the COVID Era
More than half of all outstanding U.S. mortgages still have rates below 4%, despite current rates being around 6.4%. This 'lock-in effect' is keeping homeowners from selling, contributing to low home sales and high prices. A significant drop in mortgage rates would be needed to increase seller activity.
Topics: home equity housing market lock-in effect mortgage rates real estate