1105 ET - Currently, 17.2% of U.S. homeowners with mortgages have an interest rate at or above 6%, up from 12.3% in 3Q 2023, per Redfin. If this trend persists, this figure could nearly double in three years. Meanwhile, 82.8% enjoy rates below 6%, fueling the "lock-in effect" where homeowners avoid selling due to higher current rates. However, this effect is easing; the share with rates below 6% was 87.7% in 3Q 2023 and a high of 92.7% in mid-2022. The housing shortage is easing as more homes are listed, partly due to people moving for life changes like job shifts or divorce, and growing acceptance that low rates won't return soon. Also, many with significant home equity or no mortgage are not rate-bound, contributing to increased listings. (chris.wack@wsj.com)
(END) Dow Jones Newswires
February 06, 2025 11:05 ET (16:05 GMT)
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