Rate-Locked Homeowners Fuel Housing Shortage Amid Still-High Mortgage Rates
Portfolio Pulse from AJ Fabino
High mortgage rates are discouraging homeowners from selling their homes, according to data from Zillow Group Inc. This is due to the 'lock-in effect', where homeowners who secured lower mortgage rates are less likely to sell and move. Around 90% of mortgage holders currently have rates below 6%, and about 80% have rates below 5%, while current mortgage rates hover near 7%. This situation is causing a housing shortage as more home builders are forced to build new homes.
July 31, 2023 | 7:54 pm
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POSITIVE IMPACT
Zillow's data on the 'lock-in effect' of high mortgage rates could potentially increase the company's relevance in the real estate market.
Zillow's data on the 'lock-in effect' of high mortgage rates is highly relevant as it provides valuable insights into the current housing market. This could potentially increase the company's relevance and influence in the real estate market, which could positively impact its stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100
POSITIVE IMPACT
Zillow Group's data on the 'lock-in effect' of high mortgage rates could potentially increase the company's relevance in the real estate market.
Zillow Group's data on the 'lock-in effect' of high mortgage rates is highly relevant as it provides valuable insights into the current housing market. This could potentially increase the company's relevance and influence in the real estate market, which could positively impact its stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100