BiggerPockets Daily When Will the Lock-In Effect Break?
Sep 11, 2025
Explore the latest trends shaping the housing market, including how decreased mortgage rates are affecting pending sales. The discussion dives into the 'lock-in effect' and its potential to stall market progress. Additionally, gain insights into rising home inventory and its impact on prices and selling times. The podcast speculates on future mortgage rate shifts and how they might influence buyer behavior in the coming months.
AI Snips
Chapters
Transcript
Episode notes
Rates Drop Sparks Buyer Interest
- Mortgage rates fell to 6.56%, the lowest in over 10 months, easing monthly payments.
- Pending home sales rose 1.6% year-over-year, showing buyers slowly returning.
Prices Keep Payments Elevated
- Median home sale prices are up about 1.6% to $392,000 nationally, keeping payments elevated.
- Despite lower rates, monthly housing costs remain roughly 5% higher versus last year.
Watch Rate Thresholds Before Buying
- Watch mortgage rates closely; buyers are waiting for rates below 6% to act.
- Don't expect a flood of buyers until rates fall meaningfully below current levels.