A new survey from Zillow found the “mortgage rate tipping point” at which homeowners are likely to sell their homes. According to the survey, homeowners with a mortgage rate above 5% are almost twice as likely to say they plan on selling their home in the next three years than those paying a rate below 5%.
As the Fed continues to raise the federal funds rate in an attempt to combat inflation, consumers are facing higher commercial interest rates, especially mortgage rates. As of August 2, the average 30-year mortgage rate is 6.81%, compared to 6.78% last week and 5.54% a year ago. This is lower than the long-term average of 7.74%. Additionally, the average interest rate for a 15-year fixed mortgage is 6.11%, up from 6.06% a week ago and up from 4.75% last year.
