Why More Homeowners Are Giving Up Their Low Mortgage Rates.
If you’re like many homeowners, you’ve probably had this thought at least once:
“I’d love to move… but I don’t want to lose my 3% rate.”
It’s understandable. That rate has been one of the best financial wins of the last decade. Letting it go can feel like taking a step backward.
But here’s what a lot of people are beginning to realize:
a great rate doesn’t fix a home that no longer fits your life.
And more and more homeowners are choosing their lifestyle, space, family needs, and sanity over holding onto yesterday’s interest rate.
You’re not alone — and you’re not imagining it. Something is shifting.
The Lock-In Effect Is Finally Starting To Loosen
For the past few years, homeowners felt “stuck.” This is what experts call the lock-in effect — when people stay put because their next mortgage rate will be higher than the one they currently have.
But new data from the Federal Housing Finance Agency (FHFA) shows that this grip is starting to loosen.
A few things are changing:
- The share of homeowners with rates below 3% is slowly declining.
- More homeowners now have mortgages above 6% — meaning they already moved and took on today’s rates.
- The percentage of loans above 6% just hit a 10-year high.
On the surface, that shift doesn’t look dramatic. But financially and behaviorally, it’s a big deal. It means homeowners are starting to accept today’s rates as the new normal — and they’re moving anyway.
Why? Because life doesn’t pause for interest rates.
The Real Reason More Homeowners Are Moving: Life Changed
A low mortgage rate is great. But it can’t solve real-life problems like:
- Needing more space
- Needing less space
- A new job
- A growing family
- A major life transition
- Wanting to be closer to your support system
As Chen Zhao, Head of Economic Research at Redfin, says:
“More homeowners are deciding it’s worth moving even if it means giving up a lower mortgage rate. Life doesn’t stand still.”
And that’s the truth. Life moves. People change. Priorities shift.
First American calls these motivators the 5 Ds — and they drive more moves than interest rates ever will:
1. Diplomas
Maybe you bought your home early in your career. Your income has grown. Your lifestyle has changed. Your needs are different now.
2. Diapers
A growing family often outgrows the home long before parents outgrow their interest rate.
3. Divorce
Relationships changing — whether coming together or separating — often requires a new place to start fresh.
4. Downsizing
Empty nesters want freedom, simplicity, and a smaller space to maintain.
5. Death
Losing someone shifts priorities fast. Many homeowners move to be closer to family or support.
Whatever your “D” is — or even if it’s something else entirely — it’s valid. And you’re not the only one feeling it.
Many Homeowners Have Been Thinking About Moving… for a Long Time
According to Realtor.com, nearly 2 in 3 potential sellers have already been thinking about moving for over a year.
That means most people aren’t stuck because of their rate.
They’re stuck because they’re waiting for the perfect time — a time that may not ever come.
If your home no longer fits your life, the real question isn’t:
“Should I move?”
It’s:
“How long am I willing to stay in a home that no longer works for me?”
Rates Have Already Started To Ease — and More Relief Is Expected in 2026
Rates are no longer at the peak we saw earlier this year. And most forecasts show a gradual easing throughout 2026.
So while you may not be getting your old 3% rate back, you could be getting:
- A lower rate than last year
- A better payment than you expected
- A home that finally matches your lifestyle
- More stability and peace of mind
- The space or location you actually need
A mortgage rate is important. But your life is more important.
Life doesn’t wait for the perfect rate — and maybe you shouldn’t either.
If your home is no longer supporting your life, your growth, or your goals, it may be time to explore your options. With rates down from their peak and expected to ease more, moving may be more realistic than you think.
If you’re ready to talk through what a move could look like — without pressure — I’m here to help you understand what’s possible right now.
You Have Questions, We Have Answers
Selling a house can be both exciting and stressful! There are many things to consider when preparing a home for sale including pricing, repairs/upgrades, paperwork preparation etc… Hopefully this article has provided insight into some of the most commonly asked questions by home sellers so they can better prepare themselves for what lies ahead! If you still have unanswered questions or need assistance getting started with selling your house make sure to contact an experienced real estate agent who can help guide you through the entire process from start to finish! Visit our website to keep yourself updated with the latest trends!
