If you have a mortgage rate around 3%, it’s understandable that you might be reluctant to let it go. Even if you’ve thought about moving, that little voice in your head probably keeps asking, “Why would I give that up?”
But when you focus on the rate alone, you might unintentionally put your real needs and goals on hold. The truth is, most people don’t move because of interest rates. They move because life changes. So instead of asking why you’d give up your current rate, try asking this instead:
What are the chances you’ll still be living in your current home five years from now?
Take a moment to think about what the next few years might look like for you. Are you planning to grow your family? Are your adult children getting ready to move out? Is retirement coming soon? Are you already feeling cramped in your space?
If nothing is expected to change, and you’re happy where you are, staying put may be the right decision. But if there’s even a small chance a move is coming, it’s a good idea to start thinking through the timeline now.
Because even waiting a year or two could significantly impact the cost of your next home.
What the Experts Expect for Home Prices in the Next Five Years
Every quarter, Fannie Mae surveys over 100 housing market experts for their forecasts on home prices. The consensus is consistent: home prices are expected to continue rising through at least 2029 (see graph below).
These projections don’t show huge jumps year to year, but the increases add up over time. While some local markets may experience slower growth or short-term dips, history shows that prices tend to rise in the long run. And over the next five years, even modest increases can have a big impact on your budget.
Let’s look at an example. Imagine you’re planning to buy a home around $400,000. If you wait five years to make your move, that same home could cost nearly $80,000 more based on current projections (see graph below).
That’s why timing matters. The longer you wait, the more you may end up paying for the same home.
What’s Likely To Happen With Mortgage Rates
You might be thinking that it makes sense to wait for mortgage rates to drop significantly. But experts agree that we’re unlikely to see the return of those ultra-low 3% rates anytime soon (see graph below).
Yes, rates are expected to come down a bit, but not dramatically. And waiting in hopes of locking in a rate that may never come back could cost you more in the long run, especially if home prices keep rising.
The Real Question Isn’t “Why Would I Move?” It’s “When Should I?”
When you look at the numbers, waiting may not save you as much as you think. That’s why it’s a smart idea to talk with a trusted mortgage or real estate professional about your potential timeline. Even if you don’t plan to move right away, knowing what to expect can help you make a better decision.
Key Takeaway for Homebuyers
Hanging on to your low mortgage rate makes sense—until it starts keeping you from living where and how you really want to.
If a move might be in your future, even if it’s still a few years out, now is the time to start crunching the numbers. Let’s talk about your goals, explore different price points, and look at how everything adds up. That way, you’ll be ready to make an informed move when the time is right.
Source: Keeping Current Matters
Experienced Chief Operating Officer with a 26 + year demonstrated history of working in the banking industry. Skilled in all aspects of the residential mortgage market . Strong business development professional with a Bachelor of Science (BS) focused in Business Administration and Management, from St. Joseph College. A direct endorsement underwriter and a licensed Mortgage Loan Originator.
