Are People Leaving Low-Cost Mortgages?

Is the “lock in” breaking, or are homeowners going to double down on their low-cost mortgages?

The most recent stats show that 20 percent of home borrowers now have mortgages with an interest rate over 6 percent, indicating they have purchased or refinanced in the past year or so. Compare that to early 2025, when the majority of people were locked into their low-rate loans.

We’re not real estate professionals, but we keep a close eye on what’s going on with the housing market because we know how important a home is to most people. For some, a primary home can be their largest asset, so buy or sell decisions can have a big impact on their personal finances.

As you can see in the chart, just over 50 percent of homeowners still have mortgages with rates under 4 percent. But that number has been trending lower, especially in the past year.

What’s breaking the “lock-in” effect, when home sellers didn’t want to move and give up their historically low mortgage rate?

More people may be putting pen to paper and seeing the math just doesn’t add up. For example, if rates dropped by 0.15 percent on a hypothetical 30-year fixed-rate mortgage, a buyer would save about $35 a month for the average-priced home. Some streaming services cost more than $35 a month.

If you’re leaning in the direction of making a change, we’d welcome the opportunity to hear what you’re thinking.

^{CNBC.com, February 4, 2026. “A surprising share of homeowners have high mortgage rates. Here’s the breakdown.”}