If you’re a homeowner enjoying a low mortgage rate, you might feel a bit stuck these days. Perhaps you’ve considered moving—whether it’s for more space, a change of scenery, or finally finding a place that feels like home. But then the reality of today’s interest rates hits, and suddenly, that idea gets pushed aside.
This scenario is playing out for many homeowners across the country. Millions locked in at historically low rates during 2020 or 2021 are now hesitant to let go of what feels like a great deal—even if their current home no longer suits their lifestyle.
This phenomenon is known as the “lock-in effect,” and it’s a significant factor in today’s market. However, it doesn’t mean you’re out of options. If you’ve been on the fence about whether to stay or go, consider these three questions to help you gain clarity and make a decision you feel good about.
Is your current home still working for your life—or just your loan?
This is a crucial question to ask yourself. When you look beyond the interest rate and the numbers, does your home still support your day-to-day life?
Maybe what once felt spacious now seems cramped, or perhaps your home feels too large and quiet since the kids moved out. Your needs might have shifted—maybe you’re working from home more, caring for aging parents, or have welcomed a new family member. Or maybe you’ve just outgrown the space emotionally. What used to feel like a dream home now feels like a never-ending to-do list.
It’s easy to push those feelings aside and focus solely on your current rate. But when your home no longer fits your lifestyle, it’s worth considering what it’s costing you to stay—not just financially, but also emotionally and mentally. The right home doesn’t need to be perfect, but it should simplify your daily life, not complicate it.
What would a move really cost you—and what might it make possible?
There’s no denying that interest rates are higher now than they were a few years ago. But that doesn’t necessarily mean moving isn’t financially feasible. What’s important is how the entire picture looks for you.
Many homeowners today are sitting on substantial equity. As of early 2024, the average mortgage-holding homeowner in the U.S. holds approximately $299,000 in equity, according to ICE’s Mortgage Monitor report. That’s an increase from $274,000 at the end of 2022 and significantly up from $182,000 at the start of the pandemic, based on CoreLogic’s Homeowner Equity Insights report.
This equity could serve as your down payment on a new home, reduce the amount you need to borrow, lower your monthly payment, or even help you avoid private mortgage insurance.
On the flip side, consider the lifestyle benefits a move could offer you.
Maybe relocating would bring you closer to family, give your kids access to better schools, or provide that home office or outdoor space you’ve been dreaming of. Perhaps it means downsizing and freeing up extra cash each month or finally settling in a neighborhood that feels just right.
Moving isn’t just a financial decision; it’s also about improving your quality of life. When you weigh both the gains and the costs, you might find that the numbers aren’t as one-sided as they initially seem.
If you stay, are you staying intentionally—or just avoiding a hard choice?
Choosing to stay put can be the right decision for some people. But it’s essential that this choice is made intentionally, rather than defaulting to it.
Ask yourself: If I decide to stay for the next three to five years, what changes or investments would I need to make for this home to truly work for me? Would I renovate the kitchen that’s become outdated? Convert the spare room into a functional office? Redesign the backyard to make it more enjoyable?
Staying doesn’t have to mean settling. Sometimes, making peace with your current home involves creating a plan to enhance it—whether through small updates, strategic renovations, or simply adjusting how you use your space.
However, staying without a plan can lead to years of quiet frustration. Often, those small compromises can accumulate to something more costly than moving would have been.
Final Thoughts
Feeling “stuck” can be frustrating. The good news is, you’re likely not as trapped as you think. You’re simply facing a decision that deserves careful consideration.
You don’t need to have all the answers right now. But by asking the right questions about your lifestyle, goals, and finances, you can find clarity. Whether you choose to stay or go, the aim isn’t to time the market perfectly. It’s about making a decision that supports your life and future.
If you’re uncertain about what to do next, let’s have a conversation. We can help you weigh the pros and cons, look at real numbers, and explore what’s possible. This isn’t about pushing you into a sale—it’s about giving you the clarity and confidence you need to move forward in the direction that feels right for you.
