Should I Move with Today’s Mortgage Rates?

When mortgage rates spiked over the last few years, some homeowners put their plans to move on hold. Maybe you did too, because you didn’t want to sell and take on a higher mortgage rate for your next home. But does that remain the most effective strategy for you?

In today’s market, data shows more homeowners are getting used to where rates are and thinking it may be time to move. As Mark Zandi, Chief Economist at Moody’s Analytics, explains:

“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):

a group of blue and white icons

What Would Motivate You To Move?

Now that you are aware of the reasons why others would relocate, consider for a moment what would justify your own relocation. Is it time to challenge yourself and pursue your dream job, even if it is not in your immediate area? Are you interested in residing in a community that provides a robust social fabric and an abundance of activities? You might be in search of a house that provides rental opportunities to supplement your income, require additional space, or be seeking your next great adventure.

And here’s something else to consider. Mortgage rates are still expected to go down over the course of the year. And once that happens, there’s going to be a big rush of buyers jumping back into the market. While you could delay your plans until rates drop, you’ll only have more competition with those buyers if you do.

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 make your next decision, you should take into account the current mortgage rates, their projected trajectory, and the factors that would motivate you to wish to modify them. An expert can help with that. 

Bottom Line

Other homeowners are deciding to relocate as they adjust to the rates. We can discuss your top priorities and determine whether or not it is time for you to re-enter the market. 

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