Comment by sokoloff
7 days ago
What’s the alternative that’s better? Having a 5/1 or 1/1 ARM just means that your current house’s mortgage would also be more expensive because your 3% mortgage would have adjusted upward by now.
If you’re willing to have your current mortgage be more expensive to avoid the “downside of being locked into a low payment, you could just pretend your mortgage had adjusted and go buy a house that suits your needs better.
Home prices are probably higher now than they would be due to the limited supply due to people being locked into house.
Aren't most people who are "locked into house" a seller that's removed from the market, but also a buyer that's removed from the market?
I can see how someone who decides to keep their current house to use as a rental and buy a new owner-occupied property would tend to increase house purchase prices slightly (but also increase rental availability and lower rent prices slightly), but also think that’s a tiny minority of current homeowners.