If you’re like many homeowners, you’ve probably thought: “I’d love to move… but I don’t want to give up my 3% mortgage rate.” And that hesitation makes sense. A low rate feels like one of the biggest financial wins of the past decade.

But here’s the reality many homeowners are coming to terms with:

A great interest rate can’t make up for a home that no longer fits your life.

As life evolves, housing needs change - and more homeowners are realizing that staying put solely because of a low rate may be holding them back.

The Lock-In Effect Is Starting to Ease

For the past few years, many homeowners have felt frozen by what economists call the lock-in effect - the reluctance to move because doing so means taking on a higher mortgage rate.

However, recent data from the Federal Housing Finance Agency (FHFA) shows that this effect is beginning to ease. The share of homeowners holding mortgage rates below 3% is slowly declining as more people choose to move. At the same time, the number of homeowners with rates above 6% is rising - not just among first-time buyers, but also among existing homeowners making their next move.

In fact, the percentage of mortgages above 6% recently hit a 10-year high, signaling that more people are accepting today’s rates as the new normal.

Why Are More People Moving — Even with Higher Rates?

The answer is simple: life doesn’t pause.

Families grow. Careers change. Priorities shift. A home that once felt perfect can suddenly feel limiting - no matter how favorable the mortgage rate is.

As Chen Zhao, Head of Economic Research at Redfin, explains:

“More homeowners are deciding it’s worth moving even if it means giving up a lower mortgage rate. Life doesn’t stand still—people get new jobs, grow their families, downsize after retirement, or simply want to live in a different neighborhood. Those needs are starting to outweigh the financial benefit of clinging to a rock-bottom mortgage rate.”

First American refers to these life motivators as the 5 Ds:

  • Diplomas: Career growth and higher earning power can make a move-up home possible.
  • Diapers: A growing family often means a need for more space.
  • Divorce: Life changes may require a fresh start in a new home.
  • Downsizing: Less space, less maintenance, and more freedom.
  • Death: A reminder that proximity to loved ones matters.

Whatever your reason, the question isn’t whether your current rate is good - it’s whether your home still works for your life today.

Is Staying Put Really the Best Option?

According to Realtor.com, nearly two-thirds of potential sellers have been thinking about moving for over a year. That’s a long time to put plans, goals, and lifestyle needs on hold.

So maybe the real question isn’t:
“Should I move?”

Instead, it’s:
“How much longer am I willing to stay somewhere that no longer fits my life?”

Mortgage rates have already come down from their peak and are expected to ease slightly more in 2026. Combined with the real-life reasons many homeowners face, moving may be more achievable than you think.

What This Means for Homeowners in Our Local Market

Here in Central Kentucky, we’re seeing more homeowners reassess their housing needs — not because rates are perfect, but because inventory, home values, and lifestyle priorities are shifting.

Many homeowners are sitting on meaningful equity, even if they purchased within the last several years. That equity can often help offset a higher interest rate by:

  • Reducing the amount needed for the next loan
  • Creating flexibility for a down payment
  • Opening options like downsizing, relocating, or building new

At the same time, well-priced homes continue to attract serious buyers. This means sellers who are prepared and properly positioned still have strong opportunities — even in a higher-rate environment.

If you’ve been waiting for the “right time,” it may be worth revisiting what today’s market could make possible for you.

Thinking About a Move?

If you’ve been staying put because of a low mortgage rate, you’re not alone — but your home should still support your life today.

  • See what your home is worth:
    https://www.marcumsold.com/home-value/
  • Explore buying your next home:
    https://www.marcumsold.com/buyers/
  • Learn what selling could look like:
    https://www.marcumsold.com/sellers/

Have questions? Let’s talk through your options and create a plan that fits your goals.