Understanding the Rate Lock Effect in Atlanta Real Estate

Yes, the rate lock effect is still extremely strong. What the heck is a rate lock you may be asking?

Simply put, homeowners who locked in record-low mortgage rates (think record lows 2-4%) from 2020-2022, don’t want to trade them in for today’s (as of now) 7%+ rates. Selling means buying a new home generally at a much higher monthly payment—even if it’s the same size or smaller. As a result, many would-be sellers are choosing to stay put or rent rather than list their homes for sale, understandably. This is a driving factor for:

🔹 Low Inventory and Higher Competition – With fewer homes hitting the market, buyers are fighting over limited options, keeping prices steady and high.
🔹 Affordability Challenges – Higher rates mean higher monthly payments, making it tough for first-time buyers to enter the market.
🔹 More Renovations, Fewer Moves – Instead of selling, homeowners are remodeling and upgrading their current homes to fit their needs as well as renting their homes out if they are relocating or making a move.
🔹 Slower Market Activity – With fewer sellers and cautious buyers, the pace of home sales has slowed down compared to previous years and transactions lower.

Most homeowners in America (over 65% according to the CFPB) have mortgage rates below 4%. Over the last couple of yea

Throwback to just getting into the business!

rs, I’ve continued doubling down on this advice/strategy I’ve offered to my clients since I began selling homes over six years ago (woah, time really flies):

  • Hold onto your home and rent it out if it makes financial sense and you need to move (growing family, relocation, lifestyle change, etc.).
  • Use rental income to support a new home purchase if feasible.
  • Remember: Time in the market is always better than timing the market!

I firmly believe, “The best time to buy real estate was 20 years ago. The second best time is now.”

I’d love to hear any other perspectives, questions or your take on the market. Please drop a comment below and let me know what you think. I believe the only way to alleviate demand is to increase supply and build homes! Lots of my peers are either scared to buy or unable, I fear this is pushing our city and greater nation further into a renter nation, if this trend continues there will be no middle class left in years to come.

If you would like tailored advice to your current situation or thinking about making a move in Atlanta, call or text me, Ian Calabria directly at 678-337-2227

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