Realtor.com®: A 73.2% Spike in Monthly Payments For Moving Traps U.S. Homeowners in Place
Realtor.com (NWS) reports a powerful national "lock-in effect": typical current mortgage holders pay about $1,291 monthly, while buying a median-priced home today would cost roughly $2,236, a 73.2% increase in payments as of Oct 2025.
Rhea-AI Summary
Realtor.com (NWS) reports a powerful national "lock-in effect": typical current mortgage holders pay about $1,291 monthly, while buying a median-priced home today would cost roughly $2,236, a 73.2% increase in payments as of Oct 2025. More than one in four mortgages originated in 2020-2021, and only 22.1% of outstanding mortgages originated from 2022 through August 2025. High-priced metros show the largest penalties (San Jose +179.6%, Los Angeles +176.4%); even low-cost metros face meaningful move costs.
Suggested ways to "get unstuck" include renting, downsizing, or relocating until rates or incomes change.
Positive
- National payment gap of 73.2%
- Over 25% of mortgages originated in 2020-2021
- 22.1% of mortgages originated 2022–Aug 2025
Negative
- Typical homeowner faces ~$945 monthly payment increase
- San Jose monthly payment gap 179.6%
- High-priced metros amplify financing burden (Los Angeles 176.4%)
Details
News Market Reaction – NWS
On Dec 9, the day this news came out, NWS closed 0.41% above the previous close.
Data tracked by StockTitan Argus for the Dec 9 session.
Key Figures
- Current typical mortgage payment
- $1,300 per month
- Typical U.S. mortgage holder principal and interest
- Payment to buy today
- $2,236 per month
- Estimated payment for a median-priced home in current market
- National payment increase
- 73.2%
- Increase from current typical payment to buying today
- USA median monthly payment
- $1,291
- Current mortgage holder median monthly payment, USA table
- USA median rate
- 4.0%
- Current mortgage holder median mortgage rate, USA table
- San Jose payment gap
- 179.6%
- Increase in estimated monthly payment, San Jose metro
- Los Angeles payment gap
- 176.4%
- Increase in estimated monthly payment, Los Angeles metro
- Portland (Maine) gap
- 154.8%
- Increase in estimated monthly payment, Portland–South Portland metro
Historical Context
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2026 housing forecast outlining mortgage, sales, price and listing projections.
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Report on narrowing price and financing gap between new and existing homes.
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Analysis of bifurcated luxury housing markets and differing metro price trends.
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Survey showing lower buyer remorse and longer days on market in 2025.
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Survey on how Thanksgiving hosting needs shape home search preferences.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
AI-generated analysis. How Rhea-AI works. Not financial advice.
A Hefty Financial Penalty for Moving: Nationally, typical current mortgage holders face nearly a
The report finds that today's typical
"The lock-in effect isn't just theoretical; it's a significant factor weighing on the decisions of American homeowners," said Realtor.com® Chief Economist Danielle Hale. "When the average mortgage holder is staring down a
The foundation of this dilemma lies in the recent history of mortgage rates. Record-low mortgage rates in 2020 and 2021 spurred a boom in purchase and refinance activity, resulting in more than one in four current mortgages dating to those two years alone. Once mortgage rates began climbing in 2022, origination activity collapsed sharply; only
Low-Priced Markets See Smallest Lock-in Effect, But Costs Remain Significant
Even in more affordable markets, housing costs have risen, but the required increase in monthly payments to buy a typical home is smaller than the national average, making mobility more feasible. Markets with the smallest lock-in effects include:
Pittsburgh, Penn. : Homeowners face a32.5% increase in monthly payments.- Baltimore, Md.: The increase is
34.0% . - Buffalo, N.Y.: The gap stands at
34.8% .
"While low-cost markets offer the smallest penalty for moving, they weren't spared by rising rates, they simply started from a less locked-in position," said Hannah Jones, Senior Economic Research Analyst at Realtor.com®. "Crucially, many owners in these areas hold higher-rate mortgages, meaning fewer are clinging to those extremely low rates. Their penalty for selling is smaller, but the cost of mobility is still high everywhere."
Lock-in Effect by Metro: Lowest Increase in Monthly Payments | ||||
Metro | Current Mortgage Holder Median Monthly Pmt | Current Mortgage Holder Median Rate | Oct 2025 Est. Monthly Pmt | Gap |
4.0 % | 73.2 % | |||
4 % | 32.5 % | |||
3.9 % | 34.0 % | |||
4.3 % | 34.8 % | |||
4.1 % | 41.6 % | |||
4.3 % | 43.4 % | |||
Urban | 3.8 % | 43.8 % | ||
4.3 % | 43.9 % | |||
4.3 % | 44.5 % | |||
4.1 % | 47.0 % | |||
4.4 % | 48.0 % | |||
High-Priced Metros are Most Locked-in
In high-priced metros, the financial jump is especially burdensome. Because homes are already expensive, buyers typically rely on larger mortgage balances, which amplifies the impact of rising rates. This has led to dramatic lock-in in markets like:
San Jose, Calif. : A gap of179.6% in estimated monthly payments.Los Angeles, Calif. : A gap of176.4% .Portland, Maine : A gap of154.8% .
Lock-in Effect by Metro: Largest Increase in Monthly Payments | ||||
Metro | Current Mortgage Holder Median Monthly Pmt | Current Mortgage Holder Median Rate | Oct 2025 Est. Monthly Pmt | Gap |
4.0 % | 73.2 % | |||
3.8 % | 179.6 % | |||
3.8 % | 176.4 % | |||
4.0 % | 154.8 % | |||
3.8 % | 151.9 % | |||
3.9 % | 148.5 % | |||
Boise City, | 3.9 % | 137.3 % | ||
3.8 % | 131.8 % | |||
3.8 % | 127.0 % | |||
3.8 % | 123.8 % | |||
3.9 % | 119.2 % | |||
Getting Unstuck
With home prices still well above pre-pandemic levels and mortgage rates high, options for locked-in homeowners to move often involve financial strategy, such as renting their current home out, downsizing, or relocating to a lower cost of living area. Unlocking the housing market will require a combination of easing affordability constraints, such as a sustained decline in mortgage rates, stronger income growth, or slower home-price appreciation, and perhaps most importantly, time.
About Realtor.com®
Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.
Media Contact: Emily Do, press@realtor.com
View original content:https://www.prnewswire.com/news-releases/realtorcom-a-73-2-spike-in-monthly-payments-for-moving-traps-us-homeowners-in-place-302635563.html
SOURCE Realtor.com
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