By Q3 2025, more homeowners had mortgages with rates 6% or higher than those below 3%, based on federal mortgage data analyzed by MarketWatch. 21.2% of active residential mortgages were greater than or equal to 6% while 20% had rates less than 3%.

During 2020–2021, super-low rates “locked” people into their homes because selling meant taking on a much higher mortgage. That reduced inventory, pushed up home prices, and worsened affordability—contributing to the median first-time buyer age rising to 40 in 2024.

Now homeowners are adjusting to higher rates. People with 4–5% mortgages started moving first, and now even some with 3% and under are increasingly willing to sell. Economists say this could increase home listings and sales, reduce upward pressure on prices, and give buyers more selection.

Realtor.com reported active listings rose 23.2% between January and mid-December of the prior year, suggesting the market is loosening as lock-in weakens.

The housing market is gradually moving past the ultra-low-rate era. More owners are choosing lifestyle needs over rate preservation, which could unlock more housing supply and ease some pressure on prices.

Source : https://bit.ly/4jtCnx6