H
ome affordability has improved significantly as mortgage rates have slid from multi-decade highs. The 30-year fixed mortgage rate has fallen from 7.8% last November to 6.1% on average, while the 15-year rate has dropped from 7% to 5.3%. Rates declined ahead of interest rate cuts in mid-September.

    Mortgage rates are expected to remain near 6% for the remainder of the year before dipping into the high 5% range in early 2025, according to Realtor.com's October 8 report. This should help revive a real estate market that had cooled due to elevated mortgage rates. "These lower rates will offer some relief to homebuyers who have struggled with high rates in recent years, likely encouraging more buyers to return to the market," said economic analyst Jiayi Xu.

    Not only can homebuyers benefit from lower rates, but owners are also poised to gain. They can eventually refinance and save money, or move without regrets. Many owners are currently locked into rock-bottom mortgage rates common in the late 2010s and early 2020s. Realtor.com found that 84% of homeowners have a mortgage rate below 6%.

    Although mortgage rates have eased, market rates continue to exceed current rates for most homeowners, keeping them "locked in golden handcuffs." This has limited supply since owners who sell would likely have to take on an expensive mortgage themselves. Once mortgage rates breach the 6% milestone, more owners are expected to list their homes.

    Realtor.com believes metropolitan areas with a high percentage of homes on a mortgage will be impacted most when mortgage rates retreat to lower levels. Below are the 22 real-estate markets where at least 66% of owner-occupied homes are on a mortgage, compared to the nationwide rate of 60.2%.

    1. Washington, DC - 74.7% with a mortgage, 25.3% without

    2. Denver, Colorado - 72.4% with a mortgage, 27.6% without

    3. Raleigh, North Carolina - 72% with a mortgage, 28% without

    4. Virginia Beach, Virginia - 71% with a mortgage, 29% without

    5. Portland, Oregon - 69.8% with a mortgage, 30.2% without

    6. Baltimore, Maryland - 69.5% with a mortgage, 30.5% without

    7. Seattle, Washington - 69.4% with a mortgage, 30.6% without

    8. Atlanta, Georgia - 69.4% with a mortgage, 30.6% without

    9. Indianapolis, Indiana - 69% with a mortgage, 31% without

    10. San Diego, California - 68.9% with a mortgage, 31.1% without

    11. Minneapolis, Minnesota - 68.9% with a mortgage, 31.1% without

    12. Sacramento, California - 68.9% with a mortgage, 31.1% without

    13. Charlotte, North Carolina - 68.7% with a mortgage, 31.3% without

    14. Riverside, California - 68.6% with a mortgage, 31.4% without

    15. Columbus, Ohio - 68.3% with a mortgage, 31.7% without

    16. Richmond, Virginia - 68.1% with a mortgage, 31.9% without

    17. Los Angeles, California - 67.9% with a mortgage, 32.1% without

    18. San Francisco, California - 67.7% with a mortgage, 32.3% without

    19. Boston, Massachusetts - 67.6% with a mortgage, 32.4% without

    20. Nashville, Tennessee - 66.6% with a mortgage, 33.4% without

    21. Las Vegas, Nevada - 66.5% with a mortgage, 33.5% without

    22. Austin, Texas - 66.3% with a mortgage, 33.7% without