Survey: More Americans Are Reluctant To List Their Homes, Even If Rates Drop

Photography by Getty Images; Illustration by Bankrate

Five years beyond the pandemic housing boom, American homeowners appear to be increasingly cautious about re-entering the housing market, according to Bankrate’s 2025 Mortgage Rates Sentiment Survey.

The survey found that about half (51 percent) of U.S. homeowners say they would be uncomfortable with purchasing another home no matter what happens with mortgage rates this year, up 13 percentage points from Bankrate’s 2024 survey.

Meanwhile, more than half (54 percent) say there is no mortgage rate at which they would be comfortable with selling their home this year, up 12 points from last year.

The results suggest that the lock-in phenomenon continues to weigh on the housing market.

“Mortgage rates haven’t been below 6 percent in nearly three years, so buyers and sellers alike have reluctantly adjusted to high rates,” says Greg McBride, CFA, chief financial analyst for Bankrate. “While many would-be buyers are holding out for lower mortgage rates, what constitutes ‘lower’ has evolved. Many that were pining for a return to 3 percent or 4 percent rates would probably jump for joy if rates fell into the 5s.”

Besides the homeowners who are opposed to buying at any interest rate, another 40 percent say mortgage rates would need to drop below 6 percent for them to be comfortable buying a home this year. Only 1 percent say they would be comfortable buying at rates of 6 percent or more, and the remaining 8 percent say they don’t know.

Bankrate’s key takeaways

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What mortgage rate would motivate homeowners to buy?

A majority of homeowners (51 percent) say they wouldn’t feel moved to buy this year at any mortgage rate, an increase from 38 percent in 2024. Notably, among homeowners paying a mortgage rate less than 3 percent, 41 percent say they would not be interested in buying another home at any rate this year. Twenty-eight percent of homeowners paying a rate of 5 percent or more share the same sentiment.

Besides those who would not feel comfortable buying at any mortgage rate, another 37 percent say they would need rates to drop below 5 percent to be comfortable doing so. Among homeowners paying a rate of 5 percent or more, 18 percent say they would consider buying a home at the same rate.

What would it take for sellers to put their homes on the market?

Many homeowners would need to sell one home to be able to buy another. Yet more than half (54 percent) are effectively off the market, saying they wouldn’t be comfortable selling this year at any interest rate. Another 23 percent say mortgage rates need to be less than 5 percent for them to feel comfortable selling their home this year, while 14 percent say they’d need rates of less than 4 percent.

Only 3 percent of homeowners say they would be comfortable selling their home this year with mortgage rates at 6 percent or higher.

What would prompt homeowners to refinance to a new mortgage?

Record-low mortgage rates in the pandemic created a refinancing boom. Today, less than 1 percent of homeowners say they would be interested in refinancing their home loan this year with mortgage rates at 6 percent or higher. More than half (54 percent) said they would not be comfortable refinancing this year at any interest rate, and another 35 percent say that rates would need to drop below 5 percent before they’d be comfortable with pursuing a new loan.

“With so many homeowners having bought or refinanced at sub 5-percent rates prior to 2022, there isn’t much of an appetite or incentive to refinance at today’s comparatively high rates,” McBride says. “Even many borrowers that bought in the last 3 years haven’t seen the significant drop in rates they were hoping to see in order to refinance.”

What to do when mortgage rates are just too high

• Consider how long you’re willing to sit things out. American homeowners benefitted from 15 years of very-low mortgage rates, an era that began during the Great Recession in 2008 and culminated with the rock-bottom rates of the pandemic. However, it’s unlikely mortgage rates will return to those 3 percent levels in the near future. For starters, rates plunged that low because the global economy went into lockdown. The 2025 economy is far healthier than that. What’s more, inflation has remained above the Federal Reserve’s target of 2 percent, in part because of President Donald Trump’s tariff policies.
• If you’re financially ready to buy, it might not be worth waiting. Home prices rose sharply because of a longstanding shortage of homes for sale. However, appreciation has slowed, especially in some formerly hot Sun Belt markets, where prices have declined a bit as listings have swelled. If mortgage rates drop in the future, it’s possible buyers would enter the market en masse, further pushing up prices.
• Weigh your options before deciding on a lender. No matter how high or low mortgage rates are, compare at least three mortgage lenders and loan offers. There’s enough variation in rates and fees that you could save real money over the life of a loan by shopping around.
• Look to your equity. If refinancing is off the table, you might benefit from a home equity line of credit (HELOC) or a fixed-rate home equity loan. Both options allow you to keep your bargain mortgage rate in place, and HELOC and home equity loan rates are lower now than they were this time last year.

FAQ

• What is the mortgage lock-in effect?
  

  During the pandemic, many Americans bought homes or refinanced, locking in long-term mortgage rates less than 4 percent. Now that rates have surged, homeowners are unwilling to move and give up those appealingly low rates, “locking” them into staying put with their current mortgage.

• When will mortgage rates fall?
  

  As of now, economists expect the Federal Reserve to cut interest rates sometime in the second half of 2025. That could cause mortgage rates to edge down a bit. However, the current consensus among forecasters is that rates will remain above 6 percent for the rest of 2025.

  Forecast: When will mortgage rates go down?

• Methodology
  

  This survey has been conducted using an online interview administered to members of the YouGov Plc panel of individuals who have agreed to take part in surveys. All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,297 adults, of whom 1,198 were current homeowners. Fieldwork was undertaken June 5-9, 2025. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population.