Nearly One-Third of Homeowners Have a Mortgage Rate Far Below Today’s Level

About half (51%) of U.S. homeowners with mortgages have a mortgage rate under 4%—substantially below today’s level of 5%. About one-third (32%) of all homeowners—including those without mortgages—have a mortgage rate under 4%. With rates now at their level in over a decade, many of these homeowners may be incentivised to stay put because selling their home and buying another could mean giving up their ultra-low mortgage rate and increasing their monthly housing bill.

This is however an explanation mostly complying with the current narrative, which ignores that 25% of purchases are investor flips, not first time home buyers. Low rates allowed for profits and higher rates will clearly disincentives a move. The data also doesn’t take into account the tenure of ownership, which would likely surface the point above, i.e. those that won’t move now is because they’re house flippers, not first time owners.

See the full article at Redfin:

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