Coldwell Banker: Mortgage Rate ‘Lock-In Effect’ Eases

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Sellers are beginning to let go of historically low mortgage rates and buyers are re-entering the market–but are more cautious and discerning than in years past, according to Coldwell Banker Real Estate, Madison, N.J.

The firm surveyed more than 700 real estate agents nationwide for its 2026 Home Shopping Season Report. “Early indicators point to renewed buyer and seller activity, with 43% of agents reporting a busier home shopping season than last year,” the report said.

Jason Waugh, president of Coldwell Banker Affiliates, said he is seeing activity on both sides of the housing market this spring, but he called it measured. “Buyers are prepared to move forward, yet they are focused on homes that meet long‑term financial and practical needs, and they are taking the time to evaluate their options,” he said. “On the seller side, many homeowners are listing because their circumstances require a change, even if it means giving up a historically low mortgage rate. With clear motivations on both sides, there is opportunity in the market, but the pace is more controlled than the period immediately following the pandemic.”

The report said homeowners are beginning to let go of historically low mortgage rates, signaling a potential shift in one of the biggest and most persistent constraints on housing supply. For many sellers, the decision to list is less about timing the market and more about necessity, with 36% of agents saying their clients are listing due to personal life circumstances.

More than one-third–35%–of sellers currently working with Coldwell Banker affiliated agents have mortgage rates below 5% and are still planning to sell this spring. 39% of agents say the mortgage rate “lock-in effect” is not a meaningful factor, or only a minor one, when sellers decide to list.

However, still 61% of agents surveyed said it remains a “major or moderate” factor influencing decisions.

“Working through the lock-in effect will take time,” Waugh noted. “But we are starting to see early signs that it is loosening, particularly in the Midwest and in the West, which could have a meaningful impact on inventory.”