Key facts
- Pandemic-era mortgages account for a record share of outstanding loans due to low rates.
- Mortgages originated from July 2019 to June 2022 represent 42.8% of outstanding loans.
- Loans originated since July 2022 make up 27.8% of outstanding loans.
- 65.6% of outstanding loans have rates below 5%.
- 34.5% of outstanding loans have rates of 5% or higher.
Homeowners are continuing to be deterred from moving by historically low mortgage rates locked in during the pandemic era, according to a Realtor.com analysis. Mortgages originated between July 2019 and June 2022 now represent a record 42.8% of outstanding loans, as higher current borrowing costs discourage homeowners from selling.
These pandemic-era mortgages, which benefited from rates below 3%, are still influencing homeowner decisions, said Hannah Jones, senior economist at Realtor.com. Mortgages originated since July 2022, when rates began to rise, account for only 27.8% of outstanding loans.
Overall, 65.6% of outstanding loans carry rates below 5%, while 34.5% have rates of 5% or higher. Realtor.com projects that if rates stay above 6%, the share of loans at 6% or higher could reach 27% to 28.5% by mid-2027.