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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I’ll sit on my 2.75% 30 year for as long as possible.  I’ll rent it, leave it vacant, whatever it takes.  5-6 years from now the payment will be a shrinking portion of my take home.  I look forward to sticking to the banks.  I still have DTI left at my current income to finance another house.  I will NEVER sell.  [/quote]

This is such a strange flex. So you'd rather be a landlord rather than sell and invest the proceeds, no matter which scenario makes more financial sense?[/quote]

Unless rates go back down to sub 3 or 4, exactly.  Being able to access leverage at that rate is basically free.  I put 20% liquidity at risk and got 4x that at a killer rate on a virtually risk free asset.  Every year my monthly payment is paid with dollars that have less and less buying power.

Inflation has already gone to nearly 3x my rate.  With so much cheap money out there from 12+ years of low rates, inflation could stay well above my rate for a long time.  My interest rate is 35 bps above the fed’s inflation target.     They’re not easing up on the fed fund rate until inflation eases and even when they do, inflation will come back if they move too quickly.  So if rates come back down I will sell and re-leverage but until then I’m holding on to essentially free money.

Besides, if the asset goes way up and I really want to take out higher rate debt, I can take out another loan against it and keep the first mortgage at the low rate.[/quote]

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