Half of all homeowners in the United States said they feel trapped in their current homes due to the elevated mortgage rates and affordability issues.
That is according to a survey conducted by Edelman Financial, which polled 3,008 Americans who were at least 30 years old. The survey was conducted between June 12 to July 3 this year.
The survey found that 49% of homeowners under the age of 50 feel stuck in their current home due to high interest rates. Counting all homeowners in the US, the poll found 36% feel trapped in their current properties.
Current Mortgage Rates
After a six-week climb, mortgage rates have fallen for both the 30-year and 15-year terms. That said, the rates remain elevated when compared to the rates before the COVID-19 pandemic.
As of the week ending Nov. 14, the rate for the 30-year term was 6.78%, while the rate for the 15-year term was 5.99%, according to Freddie Mac's Primary Mortgage Market Survey. Elevated rates, coupled with high home prices, are pushing many buyers out of the housing market.
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For perspective, the median sale price of a typical single-family home in the US is $435,051 as of October, per data from Redfin. That is 5.2% higher than the price in the same month in 2023.
Housing Affordability Crisis
With mortgage rates so high, nearly three-quarters (72%) of homeowners, including 81% of those under the age of 50, said they were concerned, the survey noted.
In addition, 25% of Americans said they are not able to live where they want because of financial concerns. At least 21% also said they are not able to afford to buy the house they want or to renovate their current home.
Due to financial challenges, 41% of homeowners said they would be willing to relocate to another state entirely in order to save money. This figure goes up to 56% among homeowners in their 30s; 44% among those in their 40s; and 46% among those in their 50s.
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