Press release
Realtor.com®: A 73.2% Spike in Monthly Payments For Moving Traps U.S. Homeowners in Place
A Hefty Financial Penalty for Moving: Nationally, typical current mortgage holders face nearly a $1,000 increase in monthly payments to buy a median-priced
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[{"type":"text","content":"A Hefty Financial Penalty for Moving: Nationally, typical current mortgage holders face nearly a $1,000 increase in monthly payments to buy a median-priced home today.AUSTIN, Texas, Dec. 9, 2025 /PRNewswire/ -- The sizable gap between existing mortgage payments and the cost of buying a home in today's market has created a powerful \"lock-in effect\" across the nation. The feeling that many homeowners have—that \"I couldn't afford to buy my home today\"—is validated by a new Realtor.com® report.\nThe report finds that today's typical U.S. mortgage holder pays roughly $1,300 in principal and interest a month. However, to purchase a typical home in today's market, it would require a monthly payment of nearly $2,236, or a 73.2% increase in mortgage payments. This financial jump is the foundation of the lock-in effect, contributing to historically low mobility and lean for-sale inventory.\"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 $1,000-a-month cost increase just to move, that requires incredible budget flexibility that many households simply cannot manage and others choose not to take on. The ultra-low rates of 2020-2021 have become golden handcuffs, starving many local housing markets of much needed supply.\"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 22.1% of outstanding mortgages originated from 2022 through August 2025. As rates and home prices rose, the total cost of financing a home purchase increased sharply, meaning current homeowners who secured those ultra-low rates pay far less each month than new buyers, widening the gap that forms the lock-in effect.Low-Priced Markets See Smallest Lock-in Effect, But Costs Remain SignificantEven 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 loc...