Few homeowners would feel comfortable listing their home today, given how interest rates are behaving, a recent survey suggests.
Only 3% of the homeowners Bankrate surveyed said they’d feel comfortable listing their homes today. The New York City-based consumer financial services company surveyed 2,297 adults across the country, including aspiring buyers and existing owners, to see how interest rates have affected their plans. On July 17, the weekly 30-year, fixed-rate mortgage was 6.75%, according to Freddie Mac.
Homeowners are staying put in their residences, according to data from the National Association of Realtors. Existing home sales hover at 4.6 months of inventory nationwide, far short of the six months' supply needed for a balanced market. Sellers have the upper hand in negotiations when the supply of homes on the market falls below six months.
“It’s always hard to forget the past, especially when the past includes a memory as dramatic as all-time-low mortgage rates," Jeff Ostrowski, a market analyst at Bankrate Housing, said in a statement. "Most Americans want low mortgage rates to come back. But keep in mind, mortgage rates plunge because something really bad is going on in the economy.”
The Federal Reserve is holding interest rates firm to temper inflation and any potential impact from tariffs, but lawmakers from both sides of the aisle have criticized the agency’s position and called for cuts.
Bill Pulte, director of the Federal Housing Finance Agency, has called for the resignation of Federal Reserve Chair Jerome Powell, whose term ends in May 2026. Pulte said a rate decrease would boost residential sales and the housing supply by encouraging owners to list their residences and move.
Powell, however, is one of only 12 members on the committee that votes on interest rates, and while the Fed doesn't directly set mortgage rates, its actions influence the bond market, which in turn affects home loan costs.