The ‘Silver Tsunami’ Meets ‘Golden Handcuffs’ as Past Low Mortgage Rates Lock in Homeowners — Whether They Like It or Not

The silver tsunami, or the expected increase of homes on the market as baby boomers downsize, could be slowed by golden handcuffs.

The New York Times reported on Monday that by the end of last year, there was more than a 3% gap between rates on new home loans and the average fixed rate on existing mortgages.

About 70% of homeowners had mortgage rates of around 4%, according to The Times, which is significantly lower than the current market rate of about 7%.

Related: A ‘Silver Tsunami’ Is About to Upend the Housing Market, Says Analyst Who Accurately Predicted the 2008 Financial Crisis

The gap between the current rate and the average incentivizes

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