8 in 10 homeowners in Texas have mortgage rates well below current levels

About eight in ten homeowners in Texas have mortgage rates well below current levels, which may encourage many potential sellers to stay put.

In Texas, 82.5% of buyers with mortgages had rates below 5% in the first quarter, the most recent data period available, according to new analysis by Redfin from Federal Housing Finance Agency Data. Nationally, 85.3% of homeowners had rates below 5%.

The average rate on the 30-year fixed-rate mortgage rose above 6% last week for the first time since the housing crash of 2008.

“With rates now at their highest since the 2008 financial crisis, some of these homeowners are discouraged from moving because selling their home and buying another could mean giving up their low mortgage rate and taking on a bigger monthly housing bill.” , according to the Redfin report. .

Many buyers have taken advantage of historically low mortgage rates during the pandemic. A year ago, the rate was 2.86%. On a $300,000 home loan, monthly mortgage payments went from about $1,245 to $1,800 last year.

Redfin found that in Atlanta, Chicago, Los Angeles, and Washington, D.C., homeowners with mortgage rates below 3.5% were 7.6% less likely to list their homes for sale in August than those with mortgage rates below 3.5%. greater than 3.5%.

New registrations nationwide fell 19% year-over-year in the four weeks ending Sept. 11, the biggest drop since May 2020, according to Redfin.

“The good news is that people who already own homes have locked in relatively low mortgage payments,” said Redfin deputy chief economist Taylor Marr. “The bad news is that home ownership is increasingly out of reach for others, as rising rates, high house prices and a continuing housing shortage make buying a home more difficult. dear.”

In Dallas-Fort Worth, the median price for a single-family home was $415,000 in August. according to Texas A&M University’s Texas Real Estate Research Center and North Texas Real Estate Information Systems.

For the first time in 18 months, the average Collin County home sold for less than list price

About Teresa G. Wilson

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