Reply to Americans locked into lower mortgage rates have been increasingly unwilling to sell their homes.

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Reply to "Americans locked into lower mortgage rates have been increasingly unwilling to sell their homes."

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[quote=Anonymous]40 percent of home owners have no mortgage.

Of the remaining 60 percent not all have 30 year fixed originated 30 year mortgage from Spring 2020 to Spring 2022.

I work at a bank and even in Spring 2020 to Spring 2022 the refinanced loans were often 10-15 years.

Some loans even with low rates customers took out even lower 5 year adjustable (adjusts ever 5 years) or out 7/3 product. Fixed for 7 then adjusts every 3 years.

In addition people with older “seasoned” mortgages often backed out of refinancing. For instance. For instance mortgage rates in 2012, 2015 and 2016  were only like 3.5 if you paid points.  A lot of those people did not feel like paying money to refinance and restart clock on 30 year.

Yes a good chunk of people locked in low 30 year rates. But it is maybe 20-40 percent of homes.

I highly doubt a 2012 mortgage at 3.5 was in rush to refinance in 2021 9 years in and considering homes were cheap in 2022 and underwriting string after financial crisis.

For example my investment condo in 2012 we has foreclosures. We were not Fannie Freddie eligible and banks wanted 25 percent down.

A 275k unit max loan was $206,250. Nine years in not worth refinancing

Flash forward to 2021 units were 500k and banks would take 10 percent down. That is a 450k mortgage!! People forget in 2009-2014 homes so much cheaper [/quote]

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