iStock illustration

While any relief from high mortgage interest rates will be welcome, the effects of declining interest rates won’t be as impactful in New England as in other regions of the country.

That is because 66.9 percent of homes in Greater Boston are owner-occupied with a mortgage, according to economists at brokerage Redfin. According to their analysis, 81 percent of existing mortgages have a rate of 6 percent or lower. This can create what is described as the lock-in effect, where homeowners don’t want to sell their current home and lose their advantageous interest rate on their mortgage.

Similar to the Boston metro, the effects of declining interest rates won’t be as great in Connecticut, where 63.1 percent off homes are owner-occupied with a mortgage.

“Falling mortgage rates open doors for many would-be buyers and sellers, but where you live determines how much the market shifts in response to the opportunity,” said Danielle Hale, Chief Economist at Realtor.com. “In markets like Denver or Washington, D.C., where most owners are still paying off their mortgages, lower rates are more likely to spark renewed activity. Meanwhile, metros with older populations and more outright owners, like Buffalo or Miami, may see a lower market-level response, even though lower rates are a difference-maker for some individuals in these markets.”

Washington, D.C. has the most owner-occupied homes with a mortgage among major metros (73.6 percent) followed by Denver (72.9 percent).