ABC · updated 4h ago

High Mortgage Rates Trapping Homeowners in Place

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“HIGH MORTGAGE RATES TRAPPING HOMEOWNERS IN PLACE”

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In 1981, the avg 30-year mortgage rate peaked at 18.6%!

Paul Volcker's Fed drove rates to historic highs to crush inflation. A $200K loan in 1981 cost over $3,100/month — vs. ~$1,400 today at 7.4%. Today's rates feel painful, but 1981 was far worse.

U.S. homeowners gained ~$13 trillion in equity since 2020!

Federal Reserve data shows total U.S. home equity surged from ~$19T in early 2020 to over $32T by 2023 — even as high mortgage rates leave millions unable to sell or move.

Topic poll · all networksWhat happens to home equity values if mortgage rates stay high?

  • Values hold — supply is tight 0%
  • Prices slowly slide downward 0%
  • Regional splits, no clear trend 0%
  • A sharp correction hits in 2025 0%

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