As mortgage rates continue to rise it makes more and more homeowners find themselves in situation where selling their home and buying another makes less and less sense, according to Redfin’s latest report…(Redfin)
- About one-third (32%) of all homeowners have a mortgage rate under 4%.
- About half (51%) of homeowners with mortgages have a rate under 4%.
Freddie Mac just reported that mortgage rates are 214 basis points higher than one year ago. This, of course, has happened while home prices have risen almost 20% according to the latest Case-Shiller report. Redfin reports this has pushed a traditionally mortgage payment to an all-time high of $2,2288.
However, rising mortgage rates are doing their job to slow demand which will help the inventory shortage according to Redfin economist Taylor Marr…
- “That slowdown in demand may cause homes to stay on the market longer, in effect giving buyers more options to choose from. Overall, that could mean housing inventory actually gets better, not worse.”
NOTE: Some homeowners who do decide to move, instead of selling their home, have another option thanks to rising rents. “With rents on the rise, many homeowners are opting to rent out their properties instead of sell—another way for them to hold onto their low mortgage rates.”