Mar 18, 2024 - News

Divorced homeowners cling to low mortgage rates amid heartbreak

Illustration of a golden percentage symbol, but the 0's are broken wedding rings.

Illustration: Maura Losch/Axios

It's not just the exes causing heartbreak for divorcing Pennsylvanians —homeowners nationwide are reluctant to part with their low mortgage rates.

State of play: Some couples who split up are continuing to live together to blunt the financial blow of nearly 7% mortgages, even if it means one of them moving into the basement, MarketWatch reports.

Between the lines: For many a recent divorcee, refinancing the house or buying a new one could send the monthly mortgage payment soaring, according to the Divorce Lending Association, Axios' Sami Sparber writes.

Data: U.S. Census Bureau; Chart: Erin Davis/Axios Visuals
Data: U.S. Census Bureau; Chart: Erin Davis/Axios Visuals

Zoom in: Marriages in Pennsylvania and Philly outpace divorces.

  • The Commonwealth ranked 31st in the nation in marriages per 1,000 people compared with 41st for divorces.
  • Meanwhile, Philly had more than 8,400 marriages and more than 2,000 divorces and annulments in 2022, per state health data.

What's next: Assumable mortgage platforms like Roam and AssumeList aim to expand as homebuyers look for ways to secure lower-rate loans.

  • Mortgage assumptions, where buyers can take over existing home loans and interest rates, are a rare but growing way to get cheaper loans.
  • Shoppers in areas where a high share of homeowners hold government-backed mortgages are most likely to see listings offer assumptions, says Realtor.com analyst Hannah Jones, who notes most conventional mortgages aren't assumable.
avatar

Get more local stories in your inbox with Axios Philadelphia.

🌱

Support local journalism by becoming a member.

Learn more

More Philadelphia stories

No stories could be found

Philadelphiapostcard

Get a free daily digest of the most important news in your backyard with Axios Philadelphia.

🌱

Support local journalism by becoming a member.

Learn more