Over 85% of U.S. homeowners have interest rates below 6%, 76.1% have rates below 5%, and just over 50% have rates below 4%, according to Redfin.

For homeowners contemplating a move, it's unclear whether many will opt to exchange their low-rate mortgages for potentially higher ones. But data provided by the real estate brokerage does show that some are doing so.

The Federal Reserve has signaled that it plans to cut rates in September, though this is unlikely to cause a substantial decrease in mortgage interest rates.

Mortgage industry analysts forecast only a moderate reduction. Most recently, the Mortgage Bankers Association dropped its rate call to 6.5% for year-end 2024 and 5.9% in 2025 as compared to their July predictions of 6.6% and 6%, respectively.

Blakely Minton, a Redfin real estate agent, notes homeowners do want to move, and they are waiting for interest rates to hit a specific number in order to take the plunge. 

"I have a dozen or so homeowners who would like to sell, but aren't willing to give up their 3% interest rate for one that's more than twice as high," said Minton in a press release. "Many of those sellers will list if rates get back down to 5%."

Redfin's report shows in the second quarter of 2022,  92.8% of homeowners had rates below 6%, whereas that figure has now decreased to 85.7%.

Additionally, the built up of equity for some homeowners justifies foregoing a low rate.

"The pandemic surge in home values means they have enough equity to justify selling and taking on a higher rate, especially if they're downsizing or moving somewhere more affordable," Redfin's report added.