Mortgage Rates Are So Low, It Hurts Homeowners To Sell


Mortgage rates are low. They are so low, many homeowners are faced with the question, should I even sell? So one might ask why is this a hard decision? Well, the answer is simple. If a homeowner went out and bought a house the same price, their monthly payment would actually go up and be higher than their current mortgage payment. The reason being would be they would be giving up a lower percentage rate loan for a higher rate, up to a point. Therefore, many homeowners are reluctant to selling now and this is helping slow down the mortgage lending market and the inventory of available homes.

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Traditionally, this has been the opposite. Generally, when a homeowner would like to buy a new home, the mortgage rates are lower than before. Therefore they were able to trade up in a home, have a lower rate, and keep around the same monthly mortgage payment.

In mid 2013, the mortgage rates finally went back over 4 percent. Before that, the rates were below 4 percent and reached a all time low at 3.3% in late 2011. That was when many homeowners decided to refinance their home. Those individuals who were able to refinance at below 4% want to remain put in their current homes. Many have seen a major drop in their monthly payment and are much happier with their mortgage situation.



Christian Calvin mortgage Christian is a contributing writer for He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.


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