Guide to Market Data: https://bit.ly/altosebook
Demo Altos: https://altosresearch.com/contact

In this episode of the Top of Mind podcast, Mike Simonsen sits down with Jonah Coste from the Federal Housing Finance Agency (FHFA) to talk about the impact of the mortgage rate “lockin” effect: where homeowners with low mortgage rates are unwilling to sell and purchase another home at much higher rates. Jonah shares the findings from FHFA’s recent study on this phenomenon including the fact that for every percentage point that mortgage rates exceed the origination interest rate, the probability of sale is decreased by 18.1% and details how this impacts home prices, affordability, and mobility. He also gives his take on whether the lockin effect has already peaked, and how quickly it may recede from here.

About Jonah Coste

Jonah Coste conducts research on housing and mortgage markets at the Federal Housing Finance Agency (FHFA) and is especially interested in topics related to household decisionmaking and housing supply. He also has experience working on consumer finance topics at the Federal Reserve Bank of Philadelphia. He received his Ph.D. in Economics from George Washington University and his B.S. in Computational Finance from Carnegie Mellon University.

Here's a glimpse of what you'll learn:
What the mortgage rate lockin effect is, how it’s measured, and why it’s important
Key findings from the FHFA report, including how the lockin effect decreases home sales and leads to higher prices
The impact of the lockin effect on mobility, choice, and affordability
How California’s Prop 13 and other lockin mechanisms prevent home sales
How low rates created $3 trillion of net benefit to homeowners, and why we only get that benefit if we stay in our homes
Whether the lockin effect has already peaked, and how quickly it recedes from here
Reasons why 2024 and 2025 may see expanding sales rates despite this lockin effect
Some reasons to be optimistic about affordability in the coming years.

Altos Research is the premier resource for realtime real estate data. We provide weekly market statistics, analysis and reporting for 99% of the zip codes in the U.S., helping real estate professionals, investors, financial institutions, and their clients make betterinformed decisions.

Featuring Mike Simonsen, President of Altos Research

A true data geek, Mike founded Altos Research in 2006 to bring data and insight on the U.S. housing market to those who need it most. Altos provides national and local real estate data to financial institutions, real estate professionals, and investors across the country, and the company is now part of HW Media, publisher of HousingWire and RealTrends. Mike uses Altos data to identify trends in the real estate market well before the headlines, and his work has been featured in the New York Times, The Atlantic, Fortune, Forbes and other publications.

Please like this video and subscribe to our channel if you want to see more videos like this.

You can also follow us on Twitter for more data analysis and insights:

  / altosresearch  
  / mikesimonsen  

See you next week!

#realestate #realestatemarket #housingmarket

Altos Research is now part of HW Media! Check out their channel at @HousingWire for more housing market insights.