More Americans Have Mortgages Above 5%

The share of mortgage holders with rates of 5% or higher is now 24%, up from 10% two years ago, suggesting a refi tipping point could be on the horizon. Four million loans originated since 2022 have rates of 6.5% or higher, according to ICE Mortgage Technology’s Mortgage Monitor. An additional 1.9 million have rates greater than 7%. With rates yo-yo-ing between the high 6%s and low 7%s, those homeowners currently have no reason to refinance. But rates are expected to cool as the year progresses, and even a slight downward trend could incentivize them. “This has been a slow-moving change, as borrowers with lower rates have sold their homes or, to a smaller degree, refinanced to withdraw equity,” Andy…