Growing uncertainty among homeowners about selling

A new Bankrate survey shows more homeowners reluctant to sell amid rising mortgage rates.

Concerns grow as homeowners hesitate to sell in 2025

A recent survey from Bankrate has revealed that a significant number of Americans are hesitant to sell their homes in 2025. More than half of the homeowners surveyed expressed that they would be uncomfortable selling, regardless of the mortgage rate. This year, this figure rose by 12 percentage points compared to last year's survey results. The reluctance stems from the "lock-in" phenomenon, where current homeowners with low, fixed-rate mortgages are dissuaded from selling due to the fear of losing their favorable interest rates. Greg McBride, chief financial analyst for Bankrate, noted that mortgage rates have remained above 6% for almost three years, forcing buyers and sellers to adapt to the new reality. A considerable portion of homeowners, around 40%, stated that they would only consider buying again if rates fell below the 6% threshold. Current average mortgage rates sit at around 6.75%, further complicating decisions for potential sellers and buyers alike.

The findings of this survey highlight a growing trend of homeowner hesitation, prompted by high mortgage rates that deter both selling and buying. With many homeowners having secured lower interest rates in previous years, the reluctance to sell is understandable. The current economic climate forces homeowners to weigh their options carefully, influencing the housing market dynamics significantly. In the long term, the presence of these low-rate mortgages could lead to reduced housing inventory, creating further pressure on prospective buyers and potentially driving prices up.

Highlights

The future perception of mortgage rates may reshape homeowner decisions further ahead.