High mortgage loan interest rates have had an interesting effect on the housing market, especially in how they’ve effectively deterred many homeowners from selling and moving. With increased borrowing costs, many will opt to stay in their homes to avoid the financial strain of higher monthly payments.
It’s no surprise that experts expect to see a slowdown in housing turnover; however, in exchange, we expect to see these same first-time homeowners investing in bigger projects that bolster the value of their first home and make it more accommodating for their family and lifestyle:
“We’re seeing that those who bought starter homes during the pandemic and locked in low interest rates have no incentive to move anytime soon,” shares Jon Bostock, a former GE executive and current CEO of Leaf Home. “We’ll see young homeowners invest in remodeling or significant maintenance projects they previously ignored, thinking they might not stay long.”
