{"id":890128,"date":"2025-09-29T08:51:00","date_gmt":"2025-09-29T12:51:00","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/share-of-mortgages-with-rates-above-6-climbs-to-10-year-high-as-americans-adapt-to-new-normal\/"},"modified":"2025-09-29T08:51:00","modified_gmt":"2025-09-29T12:51:00","slug":"share-of-mortgages-with-rates-above-6-climbs-to-10-year-high-as-americans-adapt-to-new-normal","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/share-of-mortgages-with-rates-above-6-climbs-to-10-year-high-as-americans-adapt-to-new-normal\/","title":{"rendered":"Share of Mortgages With Rates Above 6% Climbs to 10-Year High as Americans Adapt to New Normal"},"content":{"rendered":"

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Share of Mortgages With Rates Above 6% Climbs to 10-Year High as Americans Adapt to New Normal<\/b><\/p>\n

Redfin reports just over half of mortgaged homeowners have a rate below 4%, down from nearly two-thirds in 2022<\/i><\/p>\n

SEATTLE–(BUSINESS WIRE<\/a>)–
\nThe share of mortgaged U.S. homeowners with a rate of at least 6% rose to 19.7% in the second quarter, the highest level since 2015, according to a new report<\/a> from Redfin<\/a>, the real estate brokerage powered by Rocket. And with the weekly average mortgage rate fluctuating above 6%<\/a> since September 2022, that share is growing steadily\u2014rising between 0.8ppts and 1.4ppts each quarter for the past two years.<\/p>\n

\nThis is according to a Redfin analysis of data from the Federal Housing Finance Agency\u2019s National Mortgage Database through the second quarter of 2025, the most recent period for which data is available.<\/p>\n

\nMortgage rates have bounced around between 6-7% for most of 2025, reaching a low of 6.13% last month ahead of the Federal Reserve\u2019s interest-rate cut. As of Friday, they had risen back to 6.38%, and Redfin economists expect them to stay in the 6-7% range over the next 12 months.<\/p>\n

\nMany people took advantage of historically low mortgage rates during the 2020-2022 pandemic housing boom, with existing home sales climbing to the highest level in more than a decade and at least one-third of mortgages being refinanced. That led to the post-pandemic \u201clock-in effect,\u201d where homeowners chose to stay put instead of buying another home at a much higher rate.<\/p>\n

\nBut Americans are slowly growing accustomed to elevated mortgage rates, with the share of sub-3% mortgages dropping to 20.4% in the second quarter, down from a peak of 24.6% in the first quarter of 2021. And the share of mortgages with a rate below 6% has dropped to 80.3%, down from 92.7% three years ago.<\/p>\n

\nChen Zhao, Redfin\u2019s head of economics research, said the slight easing of the lock-in effect this year has been highlighted by an increase in inventory, with the number of homes for sale returning to pre-pandemic levels<\/a> in many areas of the country.<\/p>\n

\n\u201cMore homeowners are deciding it\u2019s worth moving even if it means giving up a lower mortgage rate,\u201d she said. \u201cLife doesn\u2019t stand still\u2014people get new jobs, grow their families, downsize after retirement, or simply want to live in a different neighborhood. Those needs are starting to outweigh the financial benefit of clinging to a rock-bottom mortgage rate. As a result, more homes are hitting the market than we\u2019ve seen in years, giving buyers a wider range of choices.\u201d<\/p>\n

\nThe increase in homes for sale and recent dip in rates, however, has not yet<\/a> led to a major uptick in sales\u2014with buyers remaining on the sidelines.<\/p>\n

\n\u201cA lot of people want to buy and they\u2019re just hanging around waiting,\u201d said Mariah O\u2019Keefe<\/a>, a Redfin Premier<\/a> real estate agent in Seattle. \u201cRates have not gone down significantly enough to move the needle\u2014prospective buyers need to see a bigger difference in their potential monthly payment before things are going to change. If rates tick down below 6%, that will bring a lot of people back into the market.\u201d<\/p>\n

Here\u2019s the full breakdown of where today\u2019s homeowners fall on the mortgage-rate spectrum:<\/b><\/p>\n