More than a third (35%) of homeowners with a mortgage rate below 6% would not give up their rate for any reason, with nearly half (47%) saying they couldn't afford today's rates, according to a new report from Best Interest Financial, a Detroit-based mortgage broker, and Clever Real Estate, a St. Louis-based real estate company.

Among homeowners with sub-3% mortgages, the percentage who wouldn't give up their rate for any reason jumps to 52%.

Although 76% of mortgaged homeowners have rates under 6%, most felt uninformed when buying (59%), and nearly two-thirds (63%) believe lenders take advantage of first-time buyers.

Overall, 1 in 10 homeowners (10%) say mortgage payments are their single biggest financial stressor. More than half of homeowners (52%) have regrets about their mortgage, rising to 75% among those paying 6% or more.

About 60% of borrowers with rates of 6% or higher say they couldn't comfortably make their mortgage payments if their income decreased at all, and nearly half (45%) say their finances have worsened since buying a home.

Additionally, 41% of high-rate homeowners feel anxious about their mortgage, compared to just 15% of those with rates below 6%.

Two-thirds (68%) of high-rate borrowers don't expect their finances to be stable over the course of their mortgage, and 44% have reduced their retirement savings to afford their mortgage — compared to just 17% of those with a rate under 6%.

Among all homeowners with mortgages, about half (49%) say rates have impacted their housing decisions. Homeowners prioritize mortgage rates over home prices, with 58% saying they'd rather move when rates are low, compared to 42% who'd prefer low home prices.

Although 69% of borrowers don't think rates will ever return to the historic lows of the pandemic-era market, 51% say they wouldn't sell unless rates drop below 5%, and 20% would only sell if rates fall below 3%.

Read the full report: https://bestinterest.com/research/mortgage-rate-lock-in-effect/