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

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[quote=Anonymous]We're in this camp. I feel like we're doing well financially. There's always someone richer, but overall are very fortunate.

We make ~$400K salary w/ upside to ~$600K+ in a good year, have a $1.6mm investment portfolio/$0.4mm home equity, paid for cars, 35 yrs old. We have a small, old ~$1.3mm house and a $4.4K / month payment (for which we paid $1mm and refi'd into &lt;3% rate). If we want something nicer in same hood, let's say a $2.2mm house and took every single dime of accessible investments ($1mm) and every single dime of post transaction cost home equity ($0.4mm) and bought that for $2.2mm house w/ a $1.4mm down payment, then our payment would go from $4.4K PITI to $8.2K PITI. With childcare and our otherwise lavish lifestyle and desire to save $$$, simply would not work, notwithstanding the giant loss in diversification and liquidity and the comfort that comes with having an investment portfolio that pays for the mortgage.

So when I look at these $2mm homes flying off shelves, I can only conclude that people are wealthier than us (which in our little bubble is probably true in select cases) or simply have a higher willingness to concentrate in home equity.

I hear you all playing the world's smallest violin for me, but it is difficult for me to comprehend home pricing with where rates are. [/quote]

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