For the last few years, many homeowners have felt stuck. They wanted more space, a different location, or a home that fit their changing life—but one thing kept holding them back: their low mortgage rate.
If you locked in a rate in the 2% or 3% range, you’ve probably told yourself, “I can’t move. I’ll never get a rate that low again.” You’re not alone. Millions of homeowners have been in the same position. But something is shifting in today’s housing market, and more people are finally deciding to move—even if it means trading in that ultra-low rate.
This change isn’t random. It reflects life transitions, market adjustments, and a growing understanding that the “perfect rate” shouldn’t stop you from living in a home that truly works for you.
Economists use the term lock-in effect to describe what happened from 2020 to 2024. Homeowners with low rates didn’t want to give them up, so they stayed in homes too small, too large, or too far from work and family.
And who could blame them? A 3% mortgage rate felt like winning the lottery.
But the reality is that a low mortgage rate cannot solve every problem. If your household changed, your job changed, or your needs changed, holding onto that rate may have meant sacrificing comfort, stability, or even financial opportunities.
What we’re seeing now is a slow but meaningful shift: more homeowners are choosing mobility over rate loyalty.
Mortgage rates peaked in the high 7% to low 8% range during the 2023–2024 period. But as of late 2025, they’ve eased from those highs, and most industry forecasts predict additional, modest rate softening in 2026.
Even if rates don’t return to 3% (and they almost certainly won’t), they are trending in a more manageable direction.
But even more important than interest rates is this simple truth:
Families grow. Jobs shift. Health needs evolve. Loved ones pass or move. Kids leave home. Priorities change.
No interest rate can freeze life in place.
Economists at First American summarize the main reasons people move into five categories known as the 5 Ds:
When people earn degrees or advance in their careers, their income often rises. That means more buying power—and often, a stronger desire for a home that better reflects their improved financial situation.
You may have bought your home early in your career. Now you may be ready to “move up.”
One of the most common reasons for moving is simple:
You’ve outgrown your space.
A new baby or expanding family can make your current home feel cramped overnight.
A major family change—whether ending a marriage or forming a new one—can necessitate a move to reset, regroup, or rebuild.
For empty nesters, retirees, and homeowners who simply want less maintenance, downsizing can offer freedom:
less cleaning, fewer expenses, and more time to live your life.
Loss often brings clarity. For some homeowners, it leads to wanting to be closer to family or moving into a home that feels more manageable during a transition.
All five factors are powerful enough to outweigh even the best mortgage rate in the world.
Data shows something surprising:
The number of mortgages with rates above 6% has reached a 10-year high.
This means more homeowners are accepting the current rate environment and choosing action instead of waiting for something that may never return.
Why? Because many homeowners are realizing:
They’ve been postponing their goals for too long
They can refinance later if rates drop
Their quality of life matters more than their rate
Their family’s needs have changed
Today’s housing market offers opportunities (equity, new inventory, job relocations)
There’s nothing wrong with valuing your low rate. It’s a great financial asset.
But ask yourself:
Does your current home still match your needs?
Is your rate keeping you somewhere you’ve outgrown?
Have you paused major life decisions because you're waiting for rates to drop?
According to Realtor.com, almost two-thirds of potential sellers have been considering moving for over a year. That’s a long time to press pause.
A home is more than a loan. It’s your lifestyle, your comfort, your mental space, and your future.
When thinking about moving, it helps to understand how mortgage types affect your buying power.
A conforming loan meets the borrowing limits set each year by the Federal Housing Finance Agency (FHFA). These loans can be purchased by Fannie Mae or Freddie Mac, which allows lenders to offer more competitive rates.
1-unit: $766,550
2-unit: $981,500
3-unit: $1,186,350
4-unit: $1,474,400
High-cost areas include parts of NYC, LA, the Bay Area, DC, and more.
1-unit: $1,149,825
2-unit: $1,472,250
3-unit: $1,779,525
4-unit: $2,211,600
A jumbo loan is any mortgage amount above the conforming limit for your county.
Because these loans cannot be purchased by Fannie Mae or Freddie Mac, they:
Have stricter credit and income requirements
May require larger down payments
Sometimes have slightly higher rates
But jumbo loans can be great for buyers in expensive markets—especially in parts of the NYC metro area.
Understanding whether you’d fall under a conforming or jumbo loan helps you plan more clearly for your next move.
Mortgage rates have already fallen from their peak. And most forecasters expect slight easing in 2026.
So if you’ve been holding back, the window ahead may offer:
More affordability
More inventory
More flexibility
A chance to move into a home that fits your life now
You don’t have to wait for the “perfect” rate. You only need a plan that aligns with your goals.
Your mortgage rate is important—but your life is more important.
If your home no longer fits your needs, now may be the right time to explore your options. Rates are easing, markets are shifting, and your next home may be more within reach than you think. To connect with me directly, contact me at 917-254-2103.
For your FREE Home evaluation to learn the value of your home, your Homeowner Resource Guide, or your Home Buying/Down Payment Assistance Guide, use this link: https://bit.ly/45URvuV or text HomeswithJustin to 85377.
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