Sandro Pansini Souza

A current survey found many US homeowners clung to low mortgage rates, even when their homes no longer fit, showing how borrowing costs reshaped moving decisions.
Among mortgage holders, 76% paid <6%, and 35% said they would not give up that rate for any reason.
Low-rate borrowers often felt protected: 55% with rates under 6% reported positive feelings, while among sub-3% borrowers, 52% refused to surrender their rate.
Higher-rate owners faced more strain. With rates at ~6% or higher, 26% called mortgages unaffordable versus 9% below 6%; 45% said finances worsened.
Payment pressure drove trade-offs for higher-rate borrowers: 63% made sacrifices, 44% cut retirement savings, and 28% worried a job change might be necessary.
The survey matched the broader lock-in effect: owners kept sub-5% loans, resale supply stayed constrained, and new mortgages were priced near the mid-6% range.
That gap helped explain behavior: 48% with rates under 6% were unwilling to sell, 40% expected longer s

Low Rates Keep Owners Put

Mortgage notes gave holders steady income over time, but limited flexibility. Selling to note buyers helped convert long-term payment streams into immediate liquidity.
Investors evaluated notes using payment history, collateral strength, legal clarity, income stability, LTV, interest rate, borrower credit, and property type and location.
Performing notes drew stronger interest because consistent borrower payments supported predictable cash flow, lower default risk, less servicing, and steadier long-term returns.
Property value mattered because collateral provided protection if borrowers defaulted. Investors weighed current value, local demand, asset condition, usability, and long-term appreciation potential.
Valuation also shifted with broader conditions, including interest rates, housing trends, inflation, economic outlook, and demand for alternative investments, while documentation gaps could delay deals.
Pricing discounted future payments for risk and time value. Sellers benefi