According to Realtor.com’s chief economist, Danielle Hale, mortgage rates above 6% now make up a larger portion of outstanding loans than the ultra-low rates seen during the pandemic housing boom. This shift indicates a gradual reset as some households transition from low-rate mortgages to higher-rate loans or enter the market for the first time, while rate lock-in continues to impact inventory recovery pace.
An analysis highlighted that while mortgage rates have decreased from their peak above 7% in January 2025 to around 6%, they haven’t dropped below 6% since September 2022. This ongoing trend continues to impact homeowner decisions, market dynamics, and housing supply.
Approximately 51.5% of outstanding mortgages carry rates of 4% or less, with over 69% having rates of 5% or lower. This contributes to homeowners hesitating to sell, as transitioning to a median-priced home today with a higher-rate loan could result in nearly a $1,000 increase in monthly mortgage payments, as per the report.
Realtor.com also observed a more than four percentage point increase in loans with rates above 6% between the third quarters of 2024 and 2025, indicating sustained homebuying activity despite higher rates.
Factors such as life events (e.g., marriage, divorce, growing families) and delayed moves due to rate fluctuations play a role in driving homebuying activity, even as rates have slightly softened from recent highs, the report noted.
Recent news of President Trump’s announcement that Fannie Mae and Freddie Mac would purchase $200 billion in mortgage-backed securities led to a rapid decline in mortgage rates. Some lenders even saw 30-year fixed-rate loans briefly dip below 6%, prompting expectations of increased refinance activity. As of the latest data from HousingWire‘s Mortgage Rates Center, 30-year conforming loan rates were at 6.24%.