Is a Low Mortgage Rate Keeping You from Your Next Move?
- 15 hours ago
- 3 min read
Locking in a low mortgage rate during the pandemic was a smart financial decision. For many homeowners, rates below 4% have created significant monthly savings and long-term value. But as life changes, it's worth asking another question:
Is your low interest rate helping you—or preventing you from making a move that better fits your life?
Today, more than 51.5% of homeowners with a mortgage still have an interest rate below 4%, creating what's known as the "lock-in effect." Many homeowners hesitate to sell because replacing a 3% mortgage with today's higher rates can feel like a step backward.
While the interest rate is important, it shouldn't be the only factor driving your decision.
The Hidden Cost of Staying Put
Sometimes, staying in your current home comes with costs that don't show up on your mortgage statement. Maybe your daily commute has doubled after changing jobs. Perhaps you're working from a makeshift office at the kitchen table because your home no longer has enough space. Or maybe your growing family has outgrown the home's layout, leaving everyone feeling a little cramped.
These lifestyle challenges may not have a dollar amount attached to them, but over time they can affect your comfort, productivity, and quality of life.
Waiting Could Cost More Than You Think
Many homeowners are hoping mortgage rates will come down before making a move. While rates may fluctuate, the historically low rates seen during the pandemic were an exception—not the norm—and many economists don't expect a return to those levels anytime soon. Meanwhile, home prices may continue to appreciate.
For example, if you're considering a $400,000 home and home values increase by just 2% over the next year, that same property could cost approximately $408,000. Even if mortgage rates dropped by 0.75%, it could still take more than five years to offset the higher purchase price. Depending on market conditions, waiting may not provide the savings many buyers expect.
Don't Overlook the Equity You've Built
Many homeowners have accumulated substantial equity over the past several years. According to ICE Mortgage Monitor, homeowners collectively hold nearly $17 trillion in home equity, with the average borrower having more than $300,000 in available equity.
That equity can create opportunities.
For example, using equity as a larger down payment on your next home could reduce your loan amount enough to help offset today's higher interest rates. In some cases, homeowners may even qualify for a lower monthly principal and interest payment on a more expensive home simply because they're financing less.
Equity may also provide flexibility to:
Make a larger down payment.
Purchase a home that better fits your current lifestyle.
Buy down your interest rate.
Explore different financing options based on your goals.
Every homeowner's situation is different, but your equity may give you more choices than you realize.
Look at the Full Picture
A mortgage rate is an important piece of the equation—but it isn't the whole equation.
Your current home should fit your lifestyle, support your long-term goals, and provide the flexibility you need for the next chapter of life. While giving up a low interest rate can feel difficult, staying in a home that no longer meets your needs may come with its own costs.
Before deciding to stay or move, it's worth looking at the complete financial picture—including your home equity, today's market, and your future plans.
ONE Presidential Mortgage can help you compare your options, understand the numbers, and determine what makes the most sense for your unique situation. Sometimes, the best move isn't about finding the lowest rate—it's about finding the right home for where life is taking you next.
Information taken from:
Sources:
[1] Freddie Mac, Primary Mortgage Market Survey.
[2] ICE Mortgage Monitor, February 2026.
[3] Storable’s 2026 Moving Forecast.
[4] ICE Mortgage Monitor, March 2026.
