Should I Move with Today’s Mortgage Rates?

Should I Move with Today’s Mortgage Rates?

When mortgage rates surged in recent years, many homeowners delayed their plans to move. If you're among them, you might have hesitated to sell fearing higher rates for your next home. But is this still the best approach for you?

In the current market, data indicates that more homeowners are adjusting to prevailing interest rates and considering making a move. According to Mark Zandi, Chief Economist at Moody’s Analytics:

“Listings are up a bit as life events and job changes are putting increasing pressure on locked-in homeowners to sell their homes. Homeowners may also be slowly coming to the realization that mortgage rates aren’t going back anywhere near the rate on their existing mortgage.”

A recent study from Bank of America sheds light on some of the things homeowners say would make them sell, even with rates where they are right now (see visual below):

What Would Motivate You To Move?

Given the motivations of others, ponder what factors would justify a move for you. Is it seizing an opportunity for your dream job, even if it means relocating? Seeking a vibrant community? Craving more space or embarking on a new adventure? Perhaps you aim to invest in a property for rental income.

Also, consider this: while mortgage rates are anticipated to decrease, this will likely prompt a surge in buyer activity. Delaying your plans until rates decline may result in heightened competition once that happens.

So, does that mean it’s worth it to move now, even with rates where they are? The answer is: that it depends.

As you weigh your options, take into account current mortgage rates, their projected trajectory, and the factors motivating your desire for change. Consulting with an expert can provide invaluable guidance in this decision-making process.

Bottom Line

Let's discuss your priorities and assess whether it's the right time for you to re-enter the market, considering how other homeowners are adapting to current mortgage rates.