Simple math shows that because a lot of homeowners have mortgages at 2% to 3% interest rates, they may think twice before selling their home and buying a new one at 5% interest.
Houwzer's Bob Griffith, general manager of home services, tells GlobeSt.com that this strategy could suppress the supply of homes for sale as well as purchaser demand.
"However, a lot of people have a longer-term perspective and realize that 5% rates are historically quite attractive," Griffith said. "Plus, a lot of non-economic factors go into the decision to sell a home and move elsewhere. It's both a rational and emotional process."
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