The Mortgage Rate Story Nobody’s Talking About

Interesting shift happening in the housing market right now…

For the first time in about five years, more homeowners now have mortgage rates ABOVE 6% than BELOW 3%.

During the pandemic, tens of millions of homeowners locked in rates in the 2’s and 3’s, which became a major reason people have stayed put over the past half-decade instead of moving.

But now rates have been around 6% for nearly four years, and more homeowners have adjusted to this new normal. According to Redfin, about 21% of homeowners now have mortgage rates above 6%, while only 20% still have rates below 3%.

We’re also seeing mortgage rates dip below 6% again for the first time in years, creating opportunities for some homeowners to refinance and lower payments.

What does this mean for the market?

In my opinion, it means more movement.

Some homeowners who were waiting for rates to fall back into the 3% and 4% range are deciding to move forward with life plans instead of waiting on the sidelines. We’re already seeing more listings hit the market compared to the last couple of years.

The market is evolving… not exploding.

As always, if you’re curious about what this means for your home or your neighborhood, I’m always happy to chat.