A look at Austin's mortgage-free homes
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Nearly one-third of Austin homes were owned outright in 2022, up almost 2% from 2017, according to the latest Census Bureau data.
- That's compared to nearly 40% nationally, the highest share since 2005.
Why it matters: This means some people aren't worrying about high mortgage rates.
Driving the news: Many free-and-clear homeowners are baby boomers who refinanced their mortgages when rates were lower, Bloomberg reports.
Plus: Cash buying was en vogue during the Austin real estate market feeding frenzy of the pandemic times.
Between the lines: There can be a psychological perk to paying off a loan early, but according to some personal finance experts, it could be smarter to invest that money instead.
- "If people derive some intrinsic happiness out of paying off their mortgage because it reduces their stress, then that has value," Michael Roberts, a Wharton School finance professor, tells Bloomberg.
What we're watching: Mortgage-rate humble brags. Major forecasts predict rates will dip in 2024, but those with 3% rates likely got the interest rate of a lifetime.
Go deeper: Pending home sales neared record low in October as mortgages approached 8%