Experts from the Bipartisan Policy Center suggest expanding assumable mortgages and introducing portable mortgages to mitigate the “lock-in” effect caused by rising mortgage rates and home prices. The “lock-in” effect has reduced household mobility by 16% and caused $20 billion in economic losses from 2022 to 2023, according to National Bureau of Economic Research data. Assumable mortgages, which allow buyers to take over sellers’ loans, are currently limited to government-backed loans, while portable mortgages would enable homeowners to transfer mortgage terms to new homes.
| Full Story: National Mortgage Professional |