Realtor.com Finds More Mortgages Now Above 6% Than Below 3%

(Image courtesy of David Brown/pexels.com)

Realtor.com, Santa Clara, Calif., reported that in the third quarter of 2025, 20% of outstanding mortgages had an interest rate below 3%. But, 21.2% were at a rate of 6% or above, an increase of four percentage points year-over-year.

That may lead to an easing of the oft-cited “lock-in” effect, where those who acquired very low rates during the COVID-19 pandemic were reluctant to move and give those rates up.

“Mortgage rates above 6% now represent a larger share of outstanding loans than the ultra-low rates that defined the pandemic-era housing boom,” said Danielle Hale, chief economist at Realtor.com. “This crossover reflects a gradual resetting as some households trade in low-rate mortgages for higher-rate loans or enter the market for the first time, even as rate lock-in continues to limit the pace of inventory recovery.”

The share of mortgages with interest rates between 3-4% was 31.5%, the share with rates between 4-5% was 17.1% and the share with rates between 5-6% was 10.2%.

Realtor.com anticipates that the Q4 2025 data could show the share of mortgages below 6% falling close to 75%–it currently stands at 78.8%.

Homebuying activity around big-life events, like marriage, divorce and having children, have kept the market in motion, the report notes. A recent Realtor.com survey found that 40% of potential buyers would find a home purchase feasible if mortgage rates fell below 6%.