If you are like many homeowners today, you have probably had this thought at least once: I would love to move, but I cannot give up my three percent mortgage rate. It makes sense. That rate has been one of your biggest financial wins. It has saved you thousands of dollars over the years, and it feels almost impossible to walk away from.
But here is the truth that often gets overlooked. A great rate cannot fix a home that no longer fits your life. When your needs change, your home sometimes needs to change with you. And more homeowners are beginning to accept that reality.
The Lock-In Effect Is Finally Loosening
For the past few years, many homeowners have been stuck in place because of something economists call the lock-in effect. This happens when people refuse to move because they do not want to trade their low rate for a higher one.
But new data from the Federal Housing Finance Agency shows that this freeze is beginning to thaw. The share of homeowners with mortgage rates below three percent is slowly shrinking. More people are moving, even if it means taking on a higher rate.
At the same time, the number of homeowners with rates above six percent is rising. Some of these are first-time buyers, but many are existing homeowners who decided that staying put was no longer worth it.
This shift is meaningful. The share of mortgages with rates above six percent has reached a ten year high. That tells us something important. People are adjusting to today’s rates and accepting them as the new normal.
Why Homeowners Are Moving Anyway
If moving means taking on a higher rate, why are more people doing it? The answer is simple. Life does not wait for the perfect financial moment.
Families grow. Jobs change. Priorities shift. A home that once felt perfect may now feel cramped, inconvenient, or misaligned with your lifestyle.
Chen Zhao, Head of Economic Research at Redfin, puts it clearly. People are deciding that the benefits of their lives outweigh the benefits of clinging to a rock bottom rate.
And that is exactly what is happening. Homeowners are realizing that staying in a home that no longer works for them is more costly than taking on a higher rate.
The Five Ds: Why People Move
First American highlights five major life events that often push people to move. They call them the Five Ds.
Diplomas
As people earn degrees and advance in their careers, their income grows. With more buying power, they may want a larger home, a better neighborhood, or a location closer to work.
Diapers
A growing family often needs more space. A home that once felt roomy can suddenly feel tight when a new baby arrives.
Divorce
Whether a marriage ends or begins, major relationship changes often require a new living situation.
Downsizing
When children move out or retirement approaches, many homeowners want a simpler lifestyle. Less space, less maintenance, more freedom.
Death
Losing a loved one can shift priorities. Many people choose to move closer to family or seek a fresh start.
These motivators are powerful. They remind us that life is not static. Your home should support your life, not restrict it.
The Real Question Homeowners Should Ask
According to Realtor.com, nearly two out of three potential sellers have been thinking about moving for more than a year. That is a long time to put your life on hold.
So maybe the real question is not Should I move? Maybe it is How long am I willing to stay in a home that no longer fits my life?
Your rate is important, but so is your daily happiness, your comfort, your family’s needs, and your long term goals.
Rates Are Already Improving
Here is another important point. Rates have already come down from their peak earlier this year. And experts expect them to ease a bit more in 2026.
No one is predicting a return to three percent rates, but even a small drop can make a meaningful difference in affordability. When you combine that with the real-life reasons you may need to move, the decision becomes clearer.
Bottom Line
Life does not wait for the perfect rate. And maybe you should not either.
With rates down from their peak and expected to soften slightly more in 2026, moving may be more realistic than you think. If your home no longer fits your life, it may be time to explore your options. A local agent and lender can help you understand what is possible and guide you toward your next chapter.