If you’re sitting on a 3% mortgage rate, you’re not alone — and you’re definitely not crazy for wanting to hold onto it. That kind of rate feels like gold in today’s higher-interest environment. But here’s the bigger question: is that low rate actually serving you, or is it quietly standing in the way of what you really need?
It’s easy to fixate on preserving a great mortgage rate, especially when rates are higher than they were a few years ago. But when it comes to real estate, the best decision isn’t always about the numbers alone. It’s about your life, your goals, and your future.
Let’s take a moment to reframe the conversation.
Why Do People Move?
Spoiler alert: most people don’t move because of a mortgage rate — they move because life changes. Whether it’s outgrowing a starter home, downsizing after kids leave the nest, or relocating for a job, personal circumstances usually outweigh financial ones.
So, instead of asking:
“Why would I give up my 3% mortgage rate?”
Try asking:
“Will I still be in this house five years from now?”
Think about it. Will your lifestyle needs be the same a few years down the road?
-
Are you planning to grow your family?
-
Will your kids be moving out?
-
Are you preparing for retirement?
-
Is your home starting to feel like too much or too little?
If nothing’s changing and you still love your current home, staying put makes sense. But if you’re even considering a move within the next few years, then your mortgage rate might not be the deal-breaker you think it is.
What’s the Cost of Waiting?
You might be thinking, “Even if I do move later, I’ll deal with it then.” But here’s what many homeowners overlook: waiting can cost more than you expect.
Each quarter, Fannie Mae surveys over 100 housing market experts on where they believe home prices are headed. The consensus? Prices are expected to continue rising through at least 2029.
That doesn’t mean home values will skyrocket every year. Some years might see slow growth, and a few markets may even see slight dips. But the long-term trend remains steady: home prices almost always go up over time.
To put this into perspective, let’s use a simple example:
-
You’re planning to move in a few years and will likely purchase a $400,000 home.
-
Based on current expert projections, that same home could cost nearly $480,000 in five years.
That’s an $80,000 difference — and that’s before you even factor in additional interest, taxes, or inflation.
In other words, even if your future mortgage rate is slightly lower than today’s, the total cost of the home could still be substantially higher, simply because of the price appreciation.
The Truth About Mortgage Rates
A lot of homeowners are holding off on moving in hopes that 3% mortgage rates will return. And while it’s understandable, the reality is that those rates aren’t likely coming back.
According to economists and housing experts, future rate projections show only modest declines — not a return to record lows. We may see rates improve somewhat over time, but expecting them to fall dramatically might lead to missed opportunities.
That’s why the question isn’t just “Why move now?”
It’s really: “What’s the financial cost of waiting — and is it worth it?”
In many cases, paying a slightly higher interest rate today on a less expensive home can make more financial sense than waiting for a lower rate on a more expensive home down the road.
And if you factor in your personal needs — like more space, better schools, or proximity to family — the value of moving sooner becomes even clearer.
When Should You Move?
Here’s the thing — you don’t have to move tomorrow. But if a move is likely in your near future, it’s worth evaluating your timeline now.
Start by asking yourself:
-
Where do I see myself in 3–5 years?
-
Will my current home still fit my lifestyle?
-
If I wait, how much more could my next home cost?
-
How long will it take to build equity in a higher-priced home later?
Working through these questions with a local real estate expert can help you make a decision based on both logic and lifestyle — not just sentiment.
Mortgage Rate Isn’t Everything
At first glance, keeping a 3% mortgage rate may seem like the ultimate money-saving move. But if it keeps you from living where or how you want, it might not be the win it seems to be.
For example:
-
If your current home no longer meets your needs, you may spend more on temporary fixes and renovations than you’d spend on a better-fitting home.
-
If a move would put you closer to work, family, or schools, you might save time, stress, and even money in the long run.
-
And if your current home feels like it’s holding you back from your goals, the cost of waiting could be more than just financial.
Bottom Line
There’s nothing wrong with loving your low mortgage rate — but there is something worth thinking about if that rate is the only reason you’re staying in a home that no longer fits.
If a move is on your radar, even a few years down the line, now is the time to explore your options. Home prices are expected to rise, and that means the longer you wait, the more your next move may cost.
Let a local real estate expert walk you through the numbers and help you plan ahead. That way, you’ll have the information you need to make a confident, informed decision — one that works for your finances and your future.
The real question isn’t whether you should move. It’s whether waiting will cost you more in the end.