Why So Many Homeowners Are Staying Put—and What That Means for Brooklyn Buyers
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It’s not your imagination—the market feels frozen, and there’s a real reason for that. Homeowners across the U.S. are more locked in than they’ve been in over 40 years, and it’s creating a kind of gridlock that’s hard to ignore, especially in high-cost, high-desire cities like ours.
Most Homeowners Won’t Trade Their Low Rates
A recent survey by Bankrate found that only 3% of U.S. homeowners are comfortable selling right now with mortgage rates above 6%. That’s a tiny number. Why? Because two-thirds of homeowners are still sitting on mortgage rates under 4%. Trading that in for today’s 6.7% means significantly higher monthly payments—often for a home that may not feel like enough of an upgrade to justify the leap.
How the Lock-In Effect Shows Up in Brooklyn
We’re seeing that hesitation play out across Brooklyn too. Longtime owners who might have considered upsizing or moving to a different neighborhood are now hitting pause. They’re looking at the math and thinking, “Why give up a 3% mortgage for something twice as expensive just to move a few subway stops over?”
A Mortgage Gap We Haven’t Seen Since the ’80s
It’s the classic lock-in effect—and right now, it’s stronger than it’s been in decades. The gap between existing mortgage rates and new mortgage rates is now around 2 percentage points, which makes the choice to sell and re-buy feel even harder. That gap was last this wide back in the early 1980s.
The Result: Low Inventory, Cautious Buyers
Meanwhile, buyers are waiting for rates to cool. Which means we have fewer listings, fewer transactions, and a lot of frustration on both sides.
If You Want to Move, Strategy Matters
So what does this mean if you do want to make a move?
For Sellers: Know Your Leverage (and Your Limits)
It means being strategic and realistic. If you’re a seller, it’s about knowing your leverage—and also your limits. Buyers aren’t flooding the market like they did in 2021, but serious, qualified buyers are out there, especially if your property is priced right and shows well.
For Buyers: The Right Homes Still Stand Out
If you’re a buyer, it’s worth keeping an eye on listings that do come up—because in a frozen market, the right home at the right price still gets attention, especially if it’s a “shiny penny” (as we like to say) that shows real value for the money.
We May Not Get 3% Rates Again—And That’s Okay
It also means we all need to shift our mindset a little. We may not be going back to 3% mortgages anytime soon, and waiting for rates to “go back down” could leave you sitting on the sidelines while home values continue to edge up.
A Small Silver Lining: The Gap Is Starting to Narrow
The silver lining? There are small signs that the gap is narrowing—mortgage rates have crept slightly lower, and even a modest drop could free up some movement in the market. And in markets like Brooklyn, where demand tends to stay strong, small shifts can lead to big openings.
Feeling Stuck? You’re Not Alone.
If you’re feeling stuck—whether you’re thinking about selling but don’t know where you’d go, or you’re trying to buy but getting discouraged—we get it. We’re seeing it play out every day, and we’re here to help you make a smart, grounded decision based on what’s actually happening, not just what the headlines say.
Let’s Figure Out Your Best Move
Let’s talk it through, and figure out whether now’s the right time—or how to be ready when it is.