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Despite the still-challenging rate environment, some homeowners might opt to bite the bullet and give up their low rate to move, according to a Redfin<\/strong> study.\u00a0\u00a0\u00a0<\/p>\n Nationwide, the share of homeowners with relatively low rates has fallen modestly from a record high of 92.8% in mid-2022. In the third quarter of 2023, 88.5% of U.S. homeowners with mortgages had an interest rate below 6%.<\/p>\n To conduct this study<\/a>, Redfin analyzed data from the Federal Housing Finance Agency<\/strong>\u2019s National Mortgage Database as of the third quarter of 2023. <\/p>\n Many homeowners<\/a> choose to sell because of major life events, such as a marriage, a new child, a new job, or a divorce. Others simply want to move to a different house or city. Another reason explaining why the share of homeowners with relatively low rates<\/a> has dipped is that some homeowners have a rate above 6%. For repeat buyers and first-time buyers who entered the market in 2022, the average mortgage rate was above 6%. As rates are currently declining, it makes sense for them to get a new mortgage.<\/p>\n Declining mortgage rates appear to have helped the inventory<\/a> situation somewhat. The 30-year fixed-rate mortgage<\/a> averaged 6.66% as of Jan. 11, down from a peak of roughly 8% in October. <\/p>\n \u201cSellers have started coming out of the woodwork because that\u2019s typical for January and because mortgage rates have dropped,\u201d David Palmer, a Redfin Premier real estate agent in Seattle, said in a statement. \u201cThey\u2019re also coming to terms with the fact that rates aren\u2019t going back down to 3% any time soon, which makes it easier to pull the trigger on selling. But a lot of sellers are worried about finding their next house because even though listings are rising, there\u2019s still a housing shortage. That\u2019s part of the reason so many sellers remain on the sidelines.\u201d<\/p>\nThe lock-in effect is still real but listings are starting to tick up<\/strong><\/h2>\n