Is it time to Move Despite Higher Mortgage Rates?

The recent surge in mortgage rates has caused many homeowners to put their plans to move on hold. If you’ve found yourself in this situation, you’re not alone. High rates have made many homeowners hesitant to sell their current homes and take on a higher rate for their next property. But is staying put still the right move for you?

In today’s market, there are signs that homeowners are beginning to adjust to the current mortgage rates and consider their next steps. 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 realizing that mortgage rates aren’t going back anywhere near the rate on their existing mortgage.”

What Would Motivate You to Move?

While other homeowners may have various reasons to consider selling, the decision ultimately comes down to your circumstances and goals. Reflect on what might make a move worth it for you. Here are some factors to consider:

• Job Opportunities: Are you looking to advance your career or take your dream job in a different location? Moving could open up new opportunities.
• Community & Lifestyle: Maybe you’re seeking a neighborhood with more amenities, a close-knit community, or a different lifestyle.
• Space & Amenities: Are you in need of more space for your family, or do you have specific amenities in mind that your current home lacks?
• Investment & Income: Consider whether a new home could offer rental opportunities to boost your income.

Looking Ahead: Rates and the Market

While current mortgage rates may be higher, experts expect them to decrease over the year. This anticipated drop could prompt a rush of buyers back into the market, increasing competition and potentially driving up prices. Delaying your plans until rates decrease could result in a more competitive market when you decide to move.

So, should you move now despite the higher rates? The answer largely depends on your situation. Evaluate today’s mortgage rates, consider where they may go in the future, and think about your motivations for making a move.

In the end, taking action now might be the best choice for your goals, even if the rates are currently higher than in previous years. Taking a step toward your next chapter could open doors to new opportunities and possibilities.