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Why the 4% Mortgage Gap Might Be Your Path to Real Estate Success

Wednesday, October 25, 2023   /   by Nick Waldner

Why the 4% Mortgage Gap Might Be Your Path to Real Estate Success

Why the 4% mortgage gap isn’t holding back savvy real estate investors.

Hello, I'm Nick Waldner from the Waldner Winters Team of Keller Williams, and today I want to talk to you about something that's been on my mind lately - the concept of the "4% gap" in mortgages. You might be wondering what this means and how it could affect your real estate decisions. Let's dive in.

So, what exactly is this "4% gap?” Well, it's the difference between the mortgage rates that many homeowners initially locked in when they purchased or refinanced their homes (usually around 3%) and today's rates, which are sitting at around 7% or even higher. This significant gap of 4% has left some homeowners hesitant to put their properties on the market.

"Understanding the 4% gap is crucial."

Two main factors contribute to this mortgage gap. First, there's the lasting memory of the 2008 housing crash. During that time, construction of new homes took a nosedive, resulting in a housing shortage that we're still trying to recover from. Second, the 4% gap in mortgage rates can make homeowners think twice about selling when they anticipate higher financing costs for a new home.

Despite the 4% gap in mortgage rates, I believe now might be an excellent time to consider selling your home. The current real estate market is marked by scarcity, with fewer homes available and limited new construction. This scarcity can actually work to your advantage as a seller, with more buyers competing for your property.


If your family has outgrown your current home, it might be time to make a move, even if it means transitioning from a 3% to a 7% mortgage. The key is to anticipate the market turning around. When interest rates eventually drop, more buyers will flood the market, driving up the value of your asset. By making the move now, you position yourself to benefit from substantial appreciation when the market shifts.


Whether you're considering selling, buying, or investing in real estate, understanding the 4% gap is crucial. If you have questions or need guidance on your real estate journey, reach out to me. I'm here to help you navigate the market and seize the opportunities it presents.

  real estate, home selling

Waldner Winters Team of Keller Williams Realty Centre
Nick Waldner
9250 Rumsey Road, Suite 100
Columbia, MD 21045

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