Interest rates are a big part of it because people who have a mortgage who would consider moving otherwise won’t. I’d consider moving, but there’s no way I’d trade my sub 3% fixed for nearly 8%.
My house is about 600k. At today’s rates I’d pay nearly 1.4 million over the life of the loan. 4k per month. At my current rate I’m paying about half that. For the same house.
This is the reason no one is selling. Everyone who had a mortgage when the rates hit record lows is never going to sell. Why would they. I’d literally be better of keeping this house and renting it out if I wanted to move. Nobody with 2.9% loans is better off walking away from it, it’s free money. Inflation is shrinking the value of what I owe, this mortgage is better than cash, and I get a house.
Interest rates are a big part of it because people who have a mortgage who would consider moving otherwise won’t. I’d consider moving, but there’s no way I’d trade my sub 3% fixed for nearly 8%.
My house is about 600k. At today’s rates I’d pay nearly 1.4 million over the life of the loan. 4k per month. At my current rate I’m paying about half that. For the same house.
This is the reason no one is selling. Everyone who had a mortgage when the rates hit record lows is never going to sell. Why would they. I’d literally be better of keeping this house and renting it out if I wanted to move. Nobody with 2.9% loans is better off walking away from it, it’s free money. Inflation is shrinking the value of what I owe, this mortgage is better than cash, and I get a house.
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