Great article from Dana Anderson who writes for Redfin, published June 14. She is a data journalist and provides a lot of background information to answer the headline question. Simply put:
“91.8% of all U.S. homeowners with a mortgage have an interest rate below 6%. People holding onto their comparatively low mortgage rate is the main reason for today’s major shortage of new listings.”
Here is a full breakdown:
- Below 6% – 91.8%
- Below 5% – 52.4%
- Below 4% – 62.0%
- Below 3% – 23.5%
A person buying a median home price today of about $380,000 with a 30 year mortgage at 6.7% would pay about $1000 more per month than buying in 2018 with a median price of $280,000 and a 4.5% mortgage rate.
Many analysts feel this is where we will be for the remainder of this year. Stay tuned as realtors, sellers, buyers and investors try to navigate this crazy housing market.