High Mortgage Rates Drive Homeowners to Sell

Homeowners with mortgage interest rates of 5% or higher are almost twice as likely to sell their homes compared to those with lower rates, according to a survey by Zillow. The Federal Reserve's efforts to combat inflation have led to higher mortgage rates, making it more expensive for homeowners with lower rates to sell and buy a new home. As a result, there has been a 28% decrease in new listings compared to last year, driving up home prices. However, 23% of homeowners plan to sell their homes in the next three years, offering hope for potential buyers. Renting is also becoming a more financially viable option, as it is cheaper than mortgage payments in 45 of the 50 largest US cities.