More homeowners are finally deciding to move even if it means giving up their ultra-low 3% mortgage rate. For years, the lock-in effect kept people in place, as many didn’t want to trade their historically low rate for a higher one. But that trend is shifting. New data shows the share of homeowners with sub-3% mortgages is slowly declining as more people choose to relocate, while the number of owners taking on rates above 6% continues to rise. This signals that people are beginning to accept today’s mortgage environment as the new normal.
What’s driving the change? Life. Families grow, careers evolve, downsizing becomes attractive, relationships change, and major life events happen. These real-world needs often called the “5 Ds” (Diplomas, Diapers, Divorce, Downsizing, Death) are starting to outweigh the financial benefit of staying in a home that no longer fits. As experts point out, people can only put their lives on hold for so long.
And with mortgage rates already down from their recent peak and expected to ease more in 2026, moving is becoming a more realistic option. Many potential sellers have been thinking about relocating for over a year, showing just how many homeowners are stuck waiting for the “perfect” moment. But life doesn’t wait for perfect conditions and your next move may not need to either.
If your current home no longer works for you, and you’ve been delaying plans because of your mortgage rate, now may be a good time to explore what’s possible in your market.
