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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