Blog > Interest Rates on Outstanding Mortgages
Real Estate Market Update! 
Did you know that a significant majority – 72.1% – of U.S. mortgage borrowers are currently enjoying interest rates below 5.0%? That's according to the latest FHFA data from Q4 2024! Looking at the breakdown, a large portion has rates in the 3.00-3.99% (33.2%) and < 3.00% (20.9%) ranges.
With today's average mortgage rates hovering around 6.7-6.8% (as of April 2, 2025), it's no surprise that many homeowners with these lower locked-in rates feel little incentive to sell and buy a new home. Why would they trade their historically low monthly payments for a significantly higher one?
This "lock-in effect" is a major factor influencing today's real estate market. It's contributing to lower inventory as existing homeowners are choosing to stay put rather than face much higher borrowing costs. This can create challenges for potential buyers as there are fewer homes on the market to choose from, potentially leading to continued price pressure in some areas.
What are your thoughts on this? Are you a homeowner with a low interest rate feeling "locked in"? Or are you a buyer navigating this landscape? Share your experiences in the comments below!
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Jim Armstrong
Team Leader/Broker Associate | License ID: 9074205
Team Leader/Broker Associate License ID: 9074205