Mortgage-free homes rise in Michigan

• Living mortgage-free doesn't mean living expense-free, but empty nesters often consider it a reason to hold onto their big homes.

Context: More people have paid cash for their homes since interest rates started rising, Redfin research shows.

By the numbers: The share of mortgage-free homes in Michigan climbed from 38% of 2.7 million total owner-occupied housing units in 2013 to 43% of 3 million last year, per the U.S. Census Bureau's American Community Survey one-year estimates. That's 1 million out of nearly 3 million housing units.

• It's similar to the past decade's 36% to 40% national increase.

Between the lines: Paying off a loan early can have a psychological perk, 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, told Bloomberg.

What's next: Those who took out a pricey mortgage in recent years are paying close attention to rates.

• They're ready to refinance if they can lower their monthly payments, according to Chen Zhao, head of economic research at Redfin.

Yes, but: Mortgage rates rose after President-elect Trump's victory and are expected to stay higher for longer, Zhao tells Axios.

• In the hours after the election was called, the 10-year treasury yield jumped several basis points and mortgage rates touched 7.13%.
• Throughout his campaign, Trump talked about slashing mortgage rates and easing new building regulations, though neither is something he can directly control from the White House.

Against the election backdrop, the Fed cut interest rates by a quarter percentage point Thursday, the second cut of the year. The Fed's actions can influence future mortgage interest rates, though the Fed doesn't set them.