Palo Alto, Calif., Dec. 14, 2022 (GLOBE NEWSWIRE) -- High mortgage rates and persistently high home prices have a majority of homeowners who want to move feeling stuck in their current homes, according to the Point Homeowner Sentiment and Moving Survey. Point, the leading home equity investment platform, surveyed 1,066 U.S. homeowners(1).
While many homeowners want to move, few believe their dream will become a reality. Only 10.9 percent of those who want to move before the end of 2023 think they will move in that timeframe. Another 42.4 percent say they won’t move because of high mortgage rates, and 31 percent say they won’t because of high home prices. For example, buying a median-priced home in October costs $968(2) more per month than buying the same home a year earlier.
| What would stop you from moving in your desired timeframe? (Asked of homeowners who wish to move before the end of 2023) | |
| Nothing — I intend to move in my desired timeframe. | 10.9% |
| My mortgage rate for a new home would be higher than my current mortgage rate | 29.7% |
| I don't currently have a mortgage, but high mortgage rates would prevent me from buying a new home | 12.7% |
| Home prices are too high | 31% |
| There aren’t enough homes to choose from | 5.7% |
| I’m worried I won’t be able to sell my current home for a good price | 7.9% |
| Other | 2.2% |
“It’s no secret homeowners are hunkering down as high mortgage rates and persistently high home prices stymie affordability, but it’s surprising to see just how many feel stuck — and how few choices they seem to have when it comes to tapping into the value in their current homes,” said Eddie Lim, Point co-founder and CEO. “We may see a very different home shopping season in 2023, with even more constrained inventory if current homeowners don’t feel like they can leave their current home.”
Nearly one-third of all homeowners who cited high mortgage rates for keeping them in place said they would move if rates came down to the 4-4.9 percent range.
| What would rates need to be for you to consider purchasing another home in the next 6-12 months? (Asked of all homeowners who said they are not moving on their desired timeline due to high mortgage rates) | |
| 6-6.9% | 10.2% |
| 5-5.9% | 22.8% |
| 4-4.9% | 28.7% |
| 3-3.9% | 20.4% |
| Below 3% | 17.4% |
However, homeowners are pessimistic about the near future of mortgage rates, with 71.9 percent saying rates will be much or somewhat higher 12 months from now.
Homeowners lean away from high interest rate loans for renovations
Meanwhile, high interest rates are causing homeowners who want to renovate their current home to find other ways to pay for improvements. Of all the homeowners surveyed, 59 percent want to renovate their current home. Most (54.4 percent) intend to pay with cash, compared with 13.5 percent who intend to get a home equity line of credit (HELOC), and 11.4 percent who will use credit cards.
Of the would-be renovators who won’t be using HELOCs or a cash-out refi, the most common reason to avoid those loans was high-interest rates (41.1 percent).
“I suspect the housing market will continue in this kind of limbo throughout the winter, but the good news is that these homeowners are sitting on record equity,” added Lim. “If people are making a choice to stay in their current homes, renovations are the next natural choice. This situation creates a unique opportunity for homeowners to leverage their existing equity to make those dreams a reality.”
For more survey details, the full report can be downloaded here.
(1) The data for this survey was collected using SurveyMonkey Audience. Information on how respondents are recruited to SurveyMonkey is available here: www.surveymonkey.com/mp/audience. 1066 adult homeowners were surveyed on Nov. 3, 2022.
(2) Calculated using the October 2022 Zillow Home Value Index of $357,589 and a 30-year fixed mortgage rate of 7.373% compared to the Zillow Home Value Index in October 2021 of $315,015 and a 30-year fixed mortgage rate of 3.07%.
