With the recent discussion about a lack of for-sale inventory, a new report from Redfin remind us that more than nine of every 10 (91.8%) U.S. homeowners with mortgages have an interest rate below 6%. That figure is down slightly from the record high of 92.9% hit in mid-2022. However, they say with rates currently around 7% many homeowners simply aren’t moving, which is intensifying a shortage of homes for sale.
“…well over 92% of homeowners with mortgages have mortgage rates below the current weekly average of 6.71%, which is near the highest level in over 20 years. Homeowners holding onto their comparatively low mortgage rates is the main reason for today’s major shortage of new listings.”