Lock-In Effect Continues: More Americans Are Reluctant to Sell Their Homes This Year

About half of homeowners would be uncomfortable purchasing another home no matter what happens with mortgage rates this year

NEW YORK – July 14, 2025 – The majority of U.S. homeowners (54%) say there is no mortgage rate at which they would be comfortable with selling their home this year, according to a new Bankrate survey. This is up from 42% in a similar survey Bankrate ran last year. Similarly, more than half of homeowners (51%) say they would be uncomfortable with purchasing another home no matter what happens with mortgage rates this year, up from 38% last year.

For more information: https://www.bankrate.com/mortgages/mortgage-rates-sentiment-survey/

Among those who would be open to buying a home this year, 2 in 3 (66%) Americans say they would need a mortgage rate lower than 5% to feel comfortable buying this year. As for current homeowners open to buying another home, about 3 in 4 (75%) say mortgage rates would need to drop below 5% for them to be comfortable buying a home this year, up from 72% last year. Comparatively, just 8% of homeowners who would consider buying say they would be comfortable buying a home with mortgage rates at or above 5%, down from 15% in 2024.

“The spring 2025 homebuying season turned out to be historically slow, and these findings offer some insight,” said Bankrate Housing Market Analyst Jeff Ostrowski. “Americans just aren’t ready to let go of those fond memories of 3% mortgage rates.”

When it comes to selling their home, just 3% of homeowners say they would be comfortable selling a home this year at a mortgage rate of 6% or higher. Additionally, less than 1% of homeowners say they would be comfortable refinancing their home loan this year with mortgage rates at 6% or higher.

Homeowners who have locked in relatively low mortgage rates are less likely to show interest in buying another home. Specifically, roughly 2 in 5 (41%) homeowners with mortgage rates less than 3% say they are not interested in buying another home at any rate and only 2% of homeowners with mortgage rates of less than 4% would be comfortable purchasing a home with mortgage rates of 5% or more.

Meanwhile, among homeowners currently paying mortgage rates of 5% or more, 18% say they would consider buying a home at the same rate and 28% say they are not interested in buying another home at any rate.

Homeowners have little interest in refinancing. The majority of homeowners (54%) say they were not comfortable with refinancing their homes at any interest rate. Among homeowners who were open to refinancing their home loan this year, 1% say they would be open with mortgage rates at 6% or higher, while 61% say that interest rates would need to drop below 4% for them to be comfortable.

“It’s always hard to forget the past, especially when the past includes a memory as dramatic as all-time-low mortgage rates,” Ostrowski added. “Most Americans want low mortgage rates to come back. But keep in mind, mortgage rates plunge because something really bad is going on in the economy. Today’s healthy economy makes it unlikely that mortgage rates will fall to anywhere near their pandemic lows.”

Methodology:

This survey has been conducted using an online interview administered to members of the YouGov Plc panel of individuals who have agreed to take part in surveys. All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,297 adults, of whom 1,198 were current homeowners. Fieldwork was undertaken June 5-9, 2025. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population.

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For more information:
Taylor Lynch
Publicist
taylor.lynch@bankrate.com | 980-366-0594
Bankrate