Posted 12/27/2023, 4:06:11 PM
Low Mortgage Holders Reap Rewards While Housing Market Cools
- Homeowners with low mortgage rates are realizing $66,000 in "lock-in effect" savings as rates remain high
- 60% of mortgage holders have a rate below 4%; total savings for these homeowners is $800 billion
- High rates caused a drop in housing inventory and existing home sales, weighing on market
- Home prices grew 0.8% monthly in October, faster than pre-pandemic rate of 0.4%
- Fitch Ratings finds US homes overvalued by up to 9.4%; predicts overvaluation to continue