3/4 Homeowners Have Mortgages Less Than 5%: 9 in 10 < 6%

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Nearly 9 in 10 U.S. homeowners have a mortgage rate below 6 percent, according to a new report from the real estate company Redfin.

Some 88.5 percent have a mortgage rate below 6 percent, down from a high of 92.8 percent of homeowners in in the second quarter of 2022, the report found.

More than three-quarters of homeowners — 78.7 percent — have a mortgage rate below 5 percent, while nearly 6 in 10 — 59.4 percent — have a mortgage below 4 percent. Just 22.6 percent have a mortgage rate below 3 percent, according to Redfin.

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As the average mortgage rate currently sits at 6.66 percent, Redfin noted that many homeowners are opting to stay put in order to avoid higher rates, resulting in a phenomenon known as the “lock-in effect” that is helping fuel the country’s housing shortage.

“A lot of sellers are worried about finding their next house because even though listings are rising, there’s still a housing shortage. That’s part of the reason so many sellers remain on the sidelines,” David Palmer, a Redfin Premier real estate agent in Seattle, said in a statement

thehill.com/business/4404959-nearly-nine-in-10-us-homeowners-have-mortgage-rate-below-6-percent-report/

h/t Captain KC Jones


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