Many homeowners hesitate to move because they locked in a low rate, but holding onto that loan might cost more in the long run. 

If you locked in a 3% mortgage rate a few years ago, letting it go feels almost painful. Every headline about “higher-for-longer” rates reinforces the instinct to stay put, leading many homeowners to ask: “Why would I give that up?”

However, most people don’t move because of interest rates. They move because life changes: a new job, a growing family, an empty nest, or retirement dreams. If you try to flip your perspective, instead of focusing on your mortgage, ask: 

Will my current house still serve me five years from now?

Think about what could change in the next half-decade. Will your kids be heading off to college, or will more toddlers be joining the household? Could stairs become a concern down the road? Do you dream of living closer to grandkids or farther from city traffic?

If your answer is that nothing’s likely to change, then staying put makes sense. But if you think a move might be on the horizon, waiting could come with a hefty price tag.

What’s the data saying about home prices and mortgage rates? According to recent surveys by Fannie Mae, home prices are expected to keep climbing, with annual gains of about 3.3% to 4% through at least 2029. 

If you’re eyeing a home in the $400,000 range today, in five years, that same house could cost you around $479,000. That’s an extra $79,000, enough for a down payment or even a kitchen remodel!

“Most people don’t move because of interest rates. They move because life changes.”

At the same time, mortgage experts don’t predict a return to 3% or even the upper-4% range anytime soon. Most forecasts expect rates to hover in the high-5% range after a gradual decline over the next couple of years.

Waiting for rates to fall back to 3% could mean watching prices rise while you sit tight in a house that no longer fits. Even if rates are a little lower in the future, they’ll likely be attached to a much higher purchase price.

That means today’s slightly higher rate on a lower home price could be a smarter financial move than tomorrow’s lower rate on a more expensive property.

If you think a move might be in your future, it’s worth running the numbers now. I can help you compare scenarios side by side so you can see what’s smarter: holding onto your low rate or making a move while prices are still within reach.

What other price points would you like to see these numbers for? Call, email, or DM me at tim@thepiercegroup.com or (843) 773-5481, and let’s map it out together.