Americans are increasingly cautious about selling their homes in 2025 compared to years past, a new survey from Bankrate found.
More than half of U.S. homeowners said they would be uncomfortable selling their home this year no matter what the mortgage rate is, an increase of 12 percentage points from last year’s survey, according to Bankrate.
Homeowners with low, fixed-rate mortgages may be reluctant to sell their homes because they would have to give up their low interest rates. This is known as the “lock-in” phenomenon, according to the report.
“Mortgage rates haven’t been below 6% in nearly three years, so buyers and sellers alike have reluctantly adjusted to high rates,” said Greg McBride, chief financial analyst for Bankrate.
Current homeowners aren’t looking to buy. Why not?
Nearly 40% of homeowners say mortgage rates would need to drop below 6% for them to be comfortable buying a home this year, the survey found.
“While many would-be buyers are holding out for lower mortgage rates, what constitutes ‘lower’ has evolved. Many that were pining for a return to 3% or 4% rates would probably jump for joy if rates fell into the fives,” McBride said in a statement.
“With so many homeowners having bought or refinanced at sub 5-percent rates prior to 2022, there isn’t much of an appetite or incentive to refinance at today’s comparatively high rates,” McBride added.
What is the current mortgage rate?
In the week ending July 17, 30-year fixed-rate mortgages averaged 6.75%, Freddie Mac announced. That’s close to the fixed-mortgage rate from a year prior. Those figures don’t include fees or points, and rates in some parts of the country may be higher or lower than the national average.
CONTRIBUTING Rachel Barber, Andrea Riquier, USA TODAY
