Is real estate locked in?
November 01, 2023
The term "locked in" is being used to describe potential buyers that already own a home with a mortgage. They are reluctant to put their homes on the market becuase their current rate is much lower than the rates being offered currently.
According to Freddie Mac, 3 percent of US homeowners have a mortgage below 6% and 70 percent of current homeowners have a mortgage rate below 4%!
No wonder why there is a shortage of homes being listed for sale.
What is driving the current market of sellers then? An aging population who will sell and not need to buy anything else, divorcing couples, people who have to change jobs and move, families with children starting school.
It will take some time for this market to even out.
