Even as the housing market evolves in 2026, the mortgage rate lock-in effect remains firmly entrenched.
More than a third (35%) of U.S. homeowners holding a mortgage rate below 6% say they would not give up their current rate under any circumstances, with 47% stating they simply could not afford today’s borrowing costs, according to a report released Tuesday by Detroit-based mortgage broker Best Interest Financial and St. Louis-based Clever Real Estate.
The report highlights a stark divide in the current housing landscape. While 76% of mortgaged homeowners currently enjoy a sub-6% rate, those who bought at 6% or higher report immense financial anxiety.
The survey underscores the heavy toll higher borrowing costs are taking on recent homebuyers. Among high-rate borrowers — defined in the report as those paying 6% or more — a staggering 75% express regret over their mortgage.
To manage their monthly obligations, 44% of these high-rate borrowers have slashed their retirement savings, compared to just 17% of homeowners with rates under 6%.
Financial stability for this demographic appears particularly fragile. Approximately 60% of borrowers with rates of 6% or higher admit they could not comfortably make their mortgage payments if their income decreased at all.
Furthermore, 41% of high-rate homeowners feel anxious about their mortgage, a sharp contrast to the 15% of those with rates below the 6% threshold who feel the same way. Overall, 45% of respondents indicated that their broader financial health has worsened since purchasing a home.
This affordability gap has paralyzed a massive segment of the housing market. Fifty-one percent of surveyed homeowners stated they won’t sell their properties until rates drop back below 5%, and 20% are holding out for a return to sub-3% rates.
For the lucky few who already possess sub-3% mortgages, the lock-in effect is even more pronounced: 52% refuse to part with their rate for any reason.
Homeowners are holding onto these rates despite widespread pessimism about the future of borrowing costs. According to the report, 69% of borrowers do not believe rates will ever return to the historic lows seen during the COVID-19 pandemic.
