Only 3% Say They’d Sell at 6% or Higher — Here’s Why That Matters
the staff of the Ridgewood blog
Ridgewood NJ, America’s housing market is stuck — and it’s not thawing anytime soon.
According to a recent Bankrate survey, only 3% of U.S. homeowners say they’d be comfortable selling their homes in 2025 if mortgage rates remain at 6% or higher — which they likely will. That reluctance has created a market freeze that’s stifling both supply and demand, pushing existing home sales to their slowest pace in nearly 30 years.
🧊 Why Homeowners Are Frozen in Place
While today’s 30-year fixed mortgage rate hovers around 6.72%, most homeowners are still holding onto much lower rates they locked in during the pandemic housing boom. According to Morgan Stanley, nearly two-thirds of all U.S. mortgages now have an interest rate below 4%.
Trading in that low monthly payment for today’s much higher rates just doesn’t make financial sense for most. That’s why homeowners are staying put, and buyers are holding back.
🏠 The Pandemic Hangover: A Decade of Low Rates
Between 2010 and 2021, Americans enjoyed some of the lowest mortgage rates in history — with many buyers locking in 30-year loans as low as 2.75% during COVID. Those days are gone, but the memory — and the math — still affects every seller’s decision.
Today’s mortgage rates may feel high, but historically, they’re moderate. In the 1980s, rates soared above 10%, and Americans still bought homes. But in the current economic climate, where wages haven’t kept up with housing prices, a 6-7% rate feels like a dealbreaker.
📉 Home Sales Hit 30-Year Lows
The result? A housing market on ice.
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Existing home sales in 2024 reached their lowest level in nearly three decades.
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June 2025 saw another drop — the slowest June in 10 months, despite what’s usually the busiest season for real estate.
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The trend is expected to drag into 2025, unless interest rates ease significantly.
🏡 Buyers and Sellers in a Holding Pattern
With rates stuck around 7%, buyers are waiting on the sidelines for better deals. Meanwhile, sellers aren’t willing to trade their cheap mortgages for expensive new ones — especially when there’s no guarantee of a new home that fits their needs and budget.
This gridlock is keeping inventory low, driving up prices, and making the market frustrating for everyone involved — especially first-time buyers and downsizing retirees.
🔍 What’s Next for the Housing Market?
Unless there’s a major shift in Federal Reserve policy or mortgage rates, don’t expect a big rebound in sales any time soon. With mortgage rate shock keeping homeowners in place, experts predict the frozen market may continue well into 2025 — or longer.
Until then, the U.S. housing market remains a case study in supply-and-demand paralysis.
Bottom Line:
Homeowners are staying locked into historically low mortgage rates, creating a supply crunch that’s dragging down the entire housing market. Unless rates come down or wages surge, expect more of the same in 2025: low inventory, sluggish sales, and frustrated buyers.
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