Is Your Low Rate Keeping You Stuck? Here’s Why More Homeowners Are Finally Choosing to Move
If you’re like a lot of homeowners, you’ve probably thought:
“I’d like to move… but I don’t want to give up my 3% rate.”
That’s completely understandable. That ultra-low rate has been one of your biggest financial wins. Letting it go can feel impossible.
But here’s the truth you can’t ignore:
A great rate won’t fix a home that no longer fits your life.
Life evolves and sometimes, your home needs to evolve with it.
The Lock-In Effect Is Starting To Ease
For the last few years, many homeowners have been “frozen” by what experts call the lock-in effect: not wanting to move because their next mortgage would come with a higher rate.
But the latest data from the Federal Housing Finance Agency (FHFA) shows that the lock-in effect is slowly loosening.
The share of homeowners with mortgage rates below 3% is gradually shrinking.
Meanwhile, the share of homeowners with rates above 6% is growing—partly due to first-time buyers, but also because many existing homeowners are choosing to move despite today’s rates.
Even though the shift looks small, it’s meaningful:
The share of mortgages above 6% just hit a 10-year high.
That means more people are accepting today’s rates as the new normal.
Why Are Homeowners Moving Even If Rates Are Higher?
Because life doesn’t stop for interest rates.
Families grow. Careers shift. Priorities change. A home that once felt perfect may no longer support your lifestyle.
As Chen Zhao, Head of Economic Research at Redfin, puts it:
“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 key.
Some needs are simply bigger than a mortgage rate.
The 5 Ds: The Life Changes Driving Moves
According to First American, five major life events tend to trigger a move:
1. Diplomas
Graduating and moving into a higher-earning career? Your starter home may not match your new lifestyle or financial capacity.
2. Diapers
Growing family, shrinking space. A new baby often makes it clear your current home isn’t enough.
3. Divorce
A major relationship change—starting or ending—often requires a new home.
4. Downsizing
Kids moved out? You may want less space, lower maintenance, and more freedom.
5. Death
Losing a loved one can shift priorities fast—like wanting to live closer to family.
Whatever the reason, the message is the same:
Your life may need a change more than you need to hold on to that old rate.
Are You Putting Your Life on Pause?
According to Realtor.com, nearly 2 in 3 potential sellers have been thinking about moving for over a year.
That’s a long time to delay:
Your plans
Your comfort
Your family’s goals
Your peace of mind
Maybe the question isn’t:
“Should I move?”
But instead:
“How much longer am I willing to stay somewhere that no longer fits my life?”
Rates Are Already Easing — And May Improve More in 2026
Rates have come down from their peak earlier this year, and experts project they’ll soften a bit more in 2026.
Combine that with your real-life needs, and you may discover that moving is more doable than you think.
Bottom Line
Life won’t wait for the perfect rate — and maybe you shouldn’t either.
If your current home no longer fits your life, now may be the right time to explore your options. With rates easing and more homeowners finally making a move, it could be the moment to take the next step.
Thinking about a move?
Connect with a trusted local real estate agent or lender to see what’s possible in today’s market.
