Should I Move with Today’s Mortgage Rates?

When mortgage rates surged in recent years, certain homeowners postponed their plans to relocate. Perhaps you also hesitated, reluctant to sell and face a higher mortgage rate for your next property. However, is this approach still the most suitable for you?

In the current market, statistics indicate that an increasing number of homeowners are becoming accustomed to prevailing interest rates and considering a move. Mark Zandi, Chief Economist at Moody's Analytics, elaborates on this trend:

“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 survey conducted by Bank of America reveals insights into the factors motivating homeowners to consider selling, despite the current interest rate environment (refer to the visual below for details):

What Would Motivate You To Move?

Now that you understand the motivations of others for moving, take a moment to contemplate what factors would justify a move for you. Is it an opportunity to pursue your dream job, even if it's not in your current locality? Are you seeking a neighborhood with richer amenities and a stronger sense of community? Perhaps you simply require more space, yearn for a new adventure, or seek a property that presents rental opportunities to supplement your income.

Here's another aspect worth pondering: Mortgage rates are forecasted to decrease throughout the year. Consequently, there's likely to be a surge of buyers entering the market once rates decline. If you postpone your plans until rates decrease, you'll inevitably face stiffer competition from these buyers.

So, does this imply that it's advantageous to move now, even with the current interest rates? The answer is: it varies.

You should take into account the current mortgage rates, their projected direction, and the factors motivating your desire for change as you contemplate your next moves. Consulting with an expert can assist you in navigating these considerations.

Bottom Line

Other homeowners are acclimating to the current rates and opting to relocate. Let’s discuss what is most important to you and determine if now is the right time for you to re-enter the market as well.