Are You Locked Into Your Home Due to a Low Mortgage Rate? 82% of Homeowners Say Yes.

I have noted in previous posts that reseller inventory levels are very low. One reason for this is that most homeowners refinanced in 2020 and 2021 when mortgage rates were at historic lows. Mortgage rates today have doubled from those earlier lows. Simply stated, homeowners are reluctant to give up their 3+% mortgage to buy a new home with a 6+% mortgage. While this has been noted in numerous industry articles, I have found a very interesting survey that puts some hard numbers to this reality. According to an article published by Realtor.com, 82% of homeowners feel locked into their current homes due to a low mortgage rate.

To be more specific, the following demographics feel locked into their current home:

97% of Gen Z

87% of Millennials

87% of Gen X

But life happens, and sometimes you need to move. The top reasons cited for moving include family changes, turning a profit, and the desire for different amenities. The youngest demographic surveyed in the article is Gen Z, many of whom struggle to balance affordability and proximity to their family when considering purchasing a home. If sellers aren’t selling, there aren’t as many options for buyers to buy.

Whether you are becoming an empty nester and needing to downsize, are relocating due to work, or want to move to a larger home with land, feeling stuck is not ideal. So what can you do? As your trusted mortgage adviser, my recommendation varies depending on the person and their unique situation. For some, it makes more sense to sell the home now, buy something new, and refinance when the rates decrease. For others, it may make more sense to sit and wait. I am always happy to discuss the best option for you. Give me a call anytime, and we can talk about your personal circumstances.

To learn more about the story I found, you can read it here. The data in the article is quite interesting.