82% of mortgaged homes have a rate below 6%

[GON]

Interesting chart. In fact, somewhat fascinating to see how percentages of mortgage rates have transitioned over the last 12 years. Looking at the 2013 percentages and seeing how many mortgages six percent were above, as others have mentioned, we have grown accustomed to sub five percent mortgages, when six+ percent wasn't so unusual. On the other side of the spectrum, the increase in home prices makes a six + percent mortgage hard to swallow when looking at actual payments on those six+ percentage mortgages with 2025 single family home prices.

 

[JoelB]

I really like this type of graph. I'm thankful to be in the dark blue section. Definitely makes moving less appealing after living in our house for 10 years.

 

[andrew_j]

Moving is so out for me. Beyond loving area I have 3 years to go on 2.5% 15 year mortgage.

$1500/month will go a long way to home improvements and life.

 

[Passport1]

Mine are both sub 3%.

 

[SwampSurvivor]

I really like this type of graph. I'm thankful to be in the dark blue section. Definitely makes moving less appealing after living in our house for 10 years.

We're in the blue area too. It's nice.
We were thinking about getting something a bit nicer in a few years ... but we're going to stay where we are.

 

[Ausfahrt]

Mine are both sub 3%.

Getting old has its advantages. We have been mortgage free since '13.

 

[Method]

I was surprised to see 20% are under three percent.

 

[BMWTurboDzl]

Interesting chart. In fact, somewhat fascinating to see how percentages of mortgage rates have transitioned over the last 12 years. Looking at the 2013 percentages and seeing how many mortgages six percent were above, as others have mentioned, we have grown accustomed to sub five percent mortgages, when six+ percent wasn't so unusual. On the other side of the spectrum, the increase in home prices makes a six + percent mortgage hard to swallow when looking at actual payments on those six+ percentage mortgages with 2025 single family home prices.

View attachment 271273

Something to think about. From 2007-2013 there wasn't a lot of activity because values had softened which deterred refinancing and sales. When the Fed kicked off QA it drove rates down which began the churning of existing high interest rate loans for lower interest rate loans. Beginning in 2017 rates began to creep and COVID relief allowed them to crash. With this wave of COVID era refinances you have this bubble of loans where borrowers are loathe to sell or refinance because they've locked in at such a low rate and "moving up" means not only a higher purchase price but more expensive financing.

 

[SC Maintenance]

The fed broke the market by pouring too much money in, somehow everyone refinancing or over-paying for houses was supposed to help with the pandemic. People are now stuck in there houses because it would cost so much more to move.

I watched part of the fed meeting when they cut 50bps - 30 minutes of my life I will never get back. A young reporter asked about housing and JP said "it wasn't a fed mandate" and essentially it was someone else's fault - while at the same time 100% of "QT" have been mortgage backed securities, so there pushing mortgage rates up. They have not shrunk there treasury balance one Iotta. What a bunch.

It will take a very long time for there to be an actual functional housing market again.

 

[BMWTurboDzl]

The fed broke the market by pouring too much money in, somehow everyone refinancing or over-paying for houses was supposed to help with the pandemic. People are now stuck in there houses because it would cost so much more to move.

I watched part of the fed meeting when they cut 50bps - 30 minutes of my life I will never get back. A young reporter asked about housing and JP said "it wasn't a fed mandate" and essentially it was someone else's fault - while at the same time 100% of "QT" have been mortgage backed securities, so there pushing mortgage rates up. They have not shrunk there treasury balance one Iotta. What a bunch.

It will take a very long time for there to be an actual functional housing market again.

The QE kept baby boomers out of the poor house by supporting housing prices because that is their largest asset. Your welcome *jking*

I read that The Fed was slowing down the run off of MBS.

 

[KrisZ]

Trying to lock down a mortgage this week, so far the lowest I got is 6.375%, the others were from 6.850% to 6.999% and my credit score is 790 or something like that. I wouldn’t hesitate a second if I got something below 6%.

 

[Kestas]

Points aren't factored into these mortgages. I wonder how much effect points have on this trend.

 

[alarmguy]

Daughter bought a house 3 weeks ago, 6.30% I dont think bought down more than a point it that.
Son is negotiating on a new build, most likely (but WAY too soon to know) will come in under 6.5% thing is he can buy down the mortgage if he wants. Builder is giving $10,000 to be used anyway they want.

 

[KrisZ]

Daughter bought a house 3 weeks ago, 6.30% I dont think bought down more than a point it that.
Son is negotiating on a new build, most likely (but WAY too soon to know) will come in under 6.5% thing is he can buy down the mortgage if he wants. Builder is giving $10,000 to be used anyway they want.

Ok, that seems in line with what I’m getting. Thanks for the info.

 

[rijndael]

People are now stuck in there houses because it would cost so much more to move.

"Stuck" sounds so harsh. I feel fortonate to have a 2.5% mortgage.

 

[Al]

Thats still 2% more than a safe savings account paying 4%

 

[rijndael]

Daughter bought a house 3 weeks ago, 6.30% I dont think bought down more than a point it that.

For a little bit of perspective, I bought over 20 years ago and I was at 6.5% for that first loan.

 

[tbm5690]

The back end of those color curves are the most telling...confirming what we already know: the lower the rate, the flatter the curve = less people selling.

 

[walterjay]

My first home was 8.5% and thought I was getting a deal. Last home finished at 5.5%. Been mortgage free for several years and it feels great.

 

[RDY4WAR]

I'm squarely in the dark blue and thankful.