The lock-in effect describes the phenomenon where homeowners with low mortgage rates (such as 3%) and substantial equity have no financial incentive to move, causing trillions of dollars in homeowner equity to remain trapped and inactive until interest rates decrease significantly enough to make moving financially advantageous.
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Trillions In Home Equity Aren’t MovingAñadido:
There are trillions of dollars sitting in homeowners equity right now that nobody is touching. That is the lock-in effect. Most people are sitting on 3% mortgages with massive equity and they have no incentive to move. But that will change the second rates come down meaningfully. And that trapped equity will begin to start moving. If you would like a read on when that window will actually open and what it could mean for your deal flow, that's what we're going to be talking about on May 20th. If you'd like to sign up to watch, just register in the link below.
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