Why More Homeowners Are Giving Up Their Low Mortgage Rate

If you’re like many homeowners right now, you’ve probably had this thought:

“I want to move… but I don’t want to lose my super-low mortgage rate.”

Totally understandable. That rate has been one of your biggest financial wins. But here’s the thing…

A great rate doesn’t fix a home that no longer fits your life.

Life happens. Things shift. Families grow. Jobs relocate. Sometimes your home just can’t keep up and that’s becoming more common again.

The Lock-In Effect Is Starting To Loosen Up

For the last couple of years, a lot of people stayed put simply because their rate was too good to give up. That hesitation even got a name: the “lock-in effect.”

But lately, more homeowners are deciding their life needs come first, even if their next mortgage rate is higher. More people are accepting today’s rates as the new normal and moving forward anyway.

So Why Are People Moving If Rates Are Higher?

Short answer: they just can’t wait anymore.

Here’s how Chen Zhao from Redfin puts it:

“Life doesn’t stand still, people get new jobs, grow their families, downsize after retirement, or simply want to live in a different neighborhood. Those needs are starting to outweigh the financial benefit of clinging to a rock-bottom mortgage rate.”

Real life is leading the decision, not interest rates.

The 5 Life Reasons People Move (a.k.a., The 5 Ds)

Economists call them the “5 Ds” and they’re usually stronger than interest rates:

Diplomas

Career growth, higher income, and moving up in home.

Diapers

A growing family that needs space.

Divorce

Whether a relationship ends or begins, housing needs change.

Downsizing

Empty nest? Ready for something easier?

Death

Losing a loved one often reshapes what really matters, like living closer to family.

Ask Yourself This

Keeping your low rate feels smart but what’s the cost of pressing pause on your plans?

Realtor.com says almost two-thirds of people thinking about selling have been considering it for over a year. That’s a long time to wait just because of a number on paper.

Maybe the real question isn’t “Should I move?”
Maybe it’s:

“How much longer do I want to live somewhere that no longer fits my life?”

What to Remember

Rates have already moved down from where they were earlier this year and experts expect slight improvement heading into 2026. Combine that with real-life motivations, and moving may be more doable than you think.

Bottom Line

Life doesn’t wait for the perfect interest rate and maybe you shouldn’t either.

If moving has been on your mind, now might be a good time to explore your options. Connecting with a trusted local agent and lender can help you understand what’s possible today, not someday.

Real estate in Grafton County is shifting quickly, and the right strategy is what protects your equity or unlocks that hidden opportunity you’ve been waiting for. If you’re curious how today’s market impacts your goals, your equity, or your dream of owning here, reach out. No pressure, just honest data, expert guidance, and a plan tailored to you. Let’s start the conversation.