A Huge Number of Homeowners Have Mortgage Rates Too Good to Give Up

Yup. Bought at the end of 2019, refinanced in late 2020. Currently have a 15 year mortgage at a fixed 2.1% APR. I literally cannot afford to give this up.

It's less that I want to leave this house, specifically, and more that I just want out of this state. For multiple reasons unrelated to my good mortgage deal, I'm stuck here for the foreseeable future.

On the bright side, I never thought I'd actually own a house so I'll take the win.

Don't you have to renew it every 5 years?
- I haven’t heard of having to renew mortgage interest rates. A fixed interest rate should be good for the life of the loan.
  I’m at 2.875% on a 25-year loan. I never plan on moving.
- No who told you that? If your interest is fixed you don't fuck with that

Same story as everyone else. Bought pre-covid, refinanced, now sitting pretty. We desperately want to move, but I would have to make like $50k more a year for the same quality of life.

Rent it out or sell it and move. How is it not a wash for whatever u want to buy?
- Uhh, because of interest rates. The very thing being discussed here.

I recently gave up my 3% mortgage from 2013 in exchange for a 7% mortgage. It hurts, but it was worth it to get out of Florida.

In the end, my housing costs actually didn't change that much because my home insurance rates were skyrocketing.

but it was worth it to get out of Florida.
You could put almost any horrific thing in front of that phrase and it sound valid.
I had to keep my arm in a tub of fire ants for 5 minutes, but it was worth it to get out of Florida.

Lucky 'mericans. In Canada, fixed mortgages are still renegotiated every 5 years or so, nearly every homeowner with a mortgage is getting wrecked by the interest rates.

Bought my house just before the crash in 2007. Felt screwed over as I went underwater and was stuck with my 6.5% loan while interest rates and home values plummeted (and because my mortgage was privately held, no HARP refi option.

Finally after nearly 15 years not only go out from under water but built enough equity for a no cost refinance. Got into a 2.25% loan.

Sad part is, despite the lower rate, due to skyrocketing insurance and taxes, my payment is no cheaper

I'm in year 17 of my 5 year starter home. I can't afford to upgrade now. I'm gonna die in this house.

Hey, don’t be so glum. You could die at work for example.
- I work from home lol

We have similar stories to the others, but also, we bought a house in a less-than-desirable town. So even if we could afford a higher mortgage rate, our house isn't worth enough to move somewhere more desirable.

Its less of a problem of lock in here in Australia. Our rates tend to only be fixed for the first few years. Then you go to the variable rate. We have an opposite problem, where we have what's known as a mortgage cliff. People who signed up at affordable repayment amounts end that lock in period and have payments jump significantly. Some are forced to sell.

Being locked in seems better than being forced to sell.

3.6 here (bought 22) and not fucking moving until rates are at least below 4 again. If that means I don’t ever love again then so be it

7-8% rates are bad by recent standards but not awful by historical standards. Depending on where I move and how much house I can get, I'd be willing to give up my 2.9% rate for something in that range.
There are a few other factors to consider right now, anyway. I'm a Houston resident, and this is supposed to be a particularly bad hurricane season along with a historic heat wave. My wife is terrified of the state's newest right wing legislative push, as well. Michigan, Minnesota, and Washington is looking better and better as Texas brains are poisoned by MAGA media. And, despite having a gangbusters growth, my O&G employer decided to cut our bonuses from last year - so I've got one eye on the job market again. Our water bill jumped by 9% in a single year. Our interior roadways are falling apart, with no sign that the city or state plans to clean them up or improve access to public transit. HISD is being cannibalized by the governor's cronies, so I won't have anywhere to send my kids in a few years.
Would I pay an extra $500/mo to live in a state that isn't run by pedophiles, bigots, and zealots? Absolutely. Bonus points if it got me out of the concrete jungle and put me in spitting distance of some decent mass transit.

2.875 here, my monthly payment is $545. I want to move, but it would be financially stupid to do so

this is the problem and not people transferring 15% of the housing market into short term rentals.

Part of me wishes to move. It's like you have to buy the house in cash now. What a time to be alive.

Which Private Equity companies can do, and then they stick it on the rental market.

And people moved away from cities during COVID to decrease their cost of living and get a bigger place while still being able to work from home. They bought with lover interest rates in their mortgage.

Now employers want a return to office. The employees can't afford to move back.

Also a lot of people have discovered that no one wants to live in rural areas because they fucking suck. That's why there's no people there.