Harris Poll finds 71 percent of Americans would be hesitant to move due to economic uncertainty over concerns, such as interest rates, inflation or a recession.
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The “lock-in effect” of this year’s run-up in mortgage rates and its potential to keep both homebuyers and sellers on the fence is a factor to be reckoned with, two consumer surveys released Thursday show.
It’s no secret that higher mortgage rates have made homes less affordable, and 61 percent of U.S. adults surveyed by The Harris Poll in November said they felt priced out of the market.
But economists say the lock-in effect — the financial disincentive for existing homeowners to give up the low rate on their existing mortgage — is exacerbating the problem by limiting the supply of listings.
The Harris Poll found 71 percent of Americans would be hesitant to move due to uncertainty about economic conditions including inflation and the prospects of a recession. More than half (53 percent) of the 1,296 homeowners and 615 renters surveyed by The Harris Poll agreed with the statement, “I am waiting for the interest rates to decrease before I make a real estate move.”
Similarly, a poll of Gen X and baby boomers found that 70 percent of homeowners ages 45 to 76 plan to retire in the homes they own or have already done so.
That poll, conducted in October by Ipsos for Bank of America, has implications for the inventory of homes for sale since Gen X and baby boomers account for 70 percent of owner-occupied homes.
Matt Vernon
“While home prices are holding steady in many parts of the country, demand continues to exceed supply, and there is still room for inventory to catch up before the housing market is in balance,” said Matt Vernon, head of retail…