More homeowners now have mortgage rates above 6% than below 3%

After nearly four years of elevated borrowing costs, the makeup of U.S. mortgage holders has shifted. More homeowners now carry mortgage rates above 6% than below 3%, according to a Redfin analysis of Federal Housing Finance Agency National Mortgage Database data through the third quarter of 2025.

It is the first time in five years that higher-rate mortgages have outnumbered ultra-low-rate loans.

In the third quarter, 21.2% of mortgaged homeowners had an interest rate of 6% or higher, up from 17.1% a year earlier and the largest share since 2015. By contrast, 20% had rates below 3%, the smallest share since late 2021. The shift has occurred over two consecutive quarters: in the second quarter of 2025, 20.3% of homeowners had rates above 6%, compared with 20.2% below 3%.

Long period of elevated rates

The data reflects how long mortgage rates have remained elevated. Until recently, rates had stayed above 6% since September 2022. The longer rates remain at that level, the more borrowers enter the market with higher-cost loans. At the same time, the share of homeowners holding sub-3% mortgages has gradually declined as those pandemic-era loans age and new buyers take on mortgages at higher prevailing rates.

Currently, 78.8% of homeowners have a mortgage rate below 6%, the lowest proportion since 2015.

The average weekly mortgage rate now stands at 5.98%, down from 6.76% a year ago and below the two-decade high of 7.79% recorded in October 2023. That recent decline may create refinancing opportunities for some borrowers.

“For homeowners with a rate north of 6%, this is a moment to run the numbers. With average rates hovering at or just below 6%, some borrowers may be able to lower their monthly payment or their long-term interest costs by refinancing. It’s not the once-in-a-generation opportunity we saw in 2020, but it could provide meaningful savings,” said Chen Zhao, head of economics research at Redfin.

Refinance applications have risen 150% year over year. Redfin economists expect activity to continue increasing if rates remain near 6% or move lower.

Market is changing

The changing rate landscape is also influencing the behavior of the housing market. During the pandemic and its aftermath, many homeowners were reluctant to sell because doing so would mean giving up mortgage rates near 3% and replacing them with substantially higher ones. As higher rates have persisted, that dynamic has begun to shift.

Even so, some homeowners remain hesitant to move. In a 2025 Redfin-commissioned survey conducted by Ipsos, 16% of U.S. homeowners said they are staying in their current home because they do not want to give up their low mortgage rate. Among respondents who do not plan to sell soon, that was the fifth most common reason cited, behind liking their current home, having nearly or fully paid off their mortgage, high home prices, and family members living in the home.

As of the third quarter of 2025, 21.2% of mortgaged homeowners had rates of 6% or higher; 10.2% had rates between 5% and 5.99%; 17.1% were between 4% and 4.99%; 31.5% were between 3% and 3.99%; and 20% had rates below 3%.

The National Mortgage Database represents a nationally representative 5% sample of first-lien, closed-end residential mortgages that were purchased or refinanced. Roughly 60% of U.S. homeowners have an outstanding mortgage.