Mortgage rates near 6% in 2026 will reduce affordability, shrinking the pool of buyers and extending selling times. The "lock-in" effect keeps many homeowners from moving, limiting housing supply and increasing competition for properties. However, higher rates boost rental demand, benefiting rental investors. Refinancing at lower rates can improve cash flow. Investors must focus on positive...
lock-in effect
A 1% drop in mortgage rates could add about 5.5 million potential homebuyers, including 1.6 million renters, by improving affordability. For example, on a $450,000 loan, monthly payments could drop by over $200, making homeownership more accessible. Lower rates also encourage current homeowners to move, increasing inventory. Certain metro areas could see up to an 8% rise in qualifying buyers, potentially...