"Potential Impact of 5% Mortgage Rates on the Housing Market"

Homeowners with mortgage rates above 5% are more likely to sell their homes compared to those with rates below 5%, according to a survey by Zillow. The majority of mortgage holders have rates below 5%, but the shortage of for-sale homes and rising prices are contributing to an affordability crisis. While demand remains strong, buyers are resorting to creative measures such as buying points to lower interest rates and compromising on their initial preferences. As mortgage rates potentially fall to 5%, inventory may increase, but the market could remain challenging for home shoppers due to limited options and higher prices.