Hey everyone, I’m trying to get a clear picture of the mortgage landscape in the United States. Does anyone have info on how outstanding mortgages are spread out across different interest rates? I’m curious about things like:
- What percentage of mortgages have rates below 3%?
- How many are in the 3-4% range?
- Are there still a lot of mortgages with rates above 5%?
It would be really helpful to understand this breakdown. I’ve heard that a lot of people locked in low rates in recent years, but I’m not sure how that’s actually reflected in the overall mortgage market. Any insights or data on this would be great. Thanks!
As someone who works in real estate finance, I can shed some light on this. The mortgage landscape has indeed shifted dramatically in recent years. Based on industry data I’ve seen, roughly 25% of outstanding mortgages have rates below 3%, mostly from the 2020-2021 refinancing boom. About 40-45% fall in the 3-4% range, representing a large chunk of pre-pandemic mortgages. Surprisingly, around 15-20% still have rates above 5%, often older loans or those with riskier profiles. The remaining 10-15% sit between 4-5%. This distribution has major implications for refinancing activity and housing market dynamics going forward. Keep in mind these figures can fluctuate, but they give a general picture of where things stand currently.
yo, i work at a mortgage company and can confirm what SereneYogi55 said. but lemme add that the sub-3% crowd is mostly folks who refi’d during covid. also, dont forget about adjustable-rate mortgages - they’re a small chunk but can seriously mess with the stats. the markets always changin tho, so these numbers might look different in a few months
Hi, interesting stats indeed! I’m curious if these numbers discourage homeowners from selling or moving? Could rising rates create barriers for first-time buyers too? What do you think about these market trends?