Why Would I Move With a 3% Mortgage Rate?
Donald Horne, Broker / Owner, Team Success Listing LLC
If you locked in a 3% mortgage rate, you’re not alone — millions of homeowners are sitting comfortably with historically low interest rates. So why would anyone even consider moving? It’s a fair question. But experts suggest there’s more to the equation than just the rate.
Home Prices Are Expected to Rise
According to recent projections from Fannie Mae and CoreLogic, home prices are expected to increase steadily over the next five years. Some forecasts predict a total gain of 15-20% by 2029, even with short-term fluctuations. That means waiting to move might cost more in the long run, especially if you plan to upgrade to a more expensive home.
Mortgage Rates May Not Return to 3%
Many homeowners are holding out hope for another dip in mortgage rates, but industry experts urge caution. The Mortgage Bankers Association projects rates could drop into the mid-5% range by late 2025, but a return to 3% isn’t likely anytime soon—if ever. Inflation, Fed policy, and economic growth will all influence where rates settle, but the ultra-low pandemic-era rates were an anomaly, not the norm.
So Why Move?
People move for many reasons—more space, a better school district, downsizing, or relocating for work. The right move isn’t just about your current interest rate; it’s about how your home fits your life now and in the future. If your needs have changed, the equity you’ve built can still give you leverage in today’s market.
And while a new rate might be higher, sellers today can often negotiate closing costs, rate buy-downs, or other incentives from motivated builders or buyers.
Final Thoughts
Yes, your 3% mortgage is valuable. But staying put just for the rate might cost you opportunities down the road. Consider your lifestyle, financial goals, and expert forecasts to make the right decision for your future.
Donald Horne / Broker-Owner
Team Success Listing LLC
teamsuccesslisting@gmail.com / 1-810-338-0628
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