Twenty-three percent of all mortgages outstanding have an interest rate below 3%, 38% are between 3% and 4%, and only 9% of all mortgages outstanding were originated with an interest rate above 6%, see the first chart.
The bottom line is that homeowners across America do not have any incentive to move and get a new mortgage with mortgage rates currently at 7.25%.
This is a key reason why the supply in the housing market continues to be so low, see the second chart.
Source: FHFA, Apollo Chief Economist
Source: Realtor.com, Apollo Chief Economist
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