Should I Move with Today’s Mortgage Rates?
As mortgage rates surged in recent years, many homeowners postponed their plans to relocate. Perhaps you also hesitated, fearing the prospect of selling and assuming a higher mortgage rate for your next property. However, is this still the optimal strategy for you?
In the current market, data indicates that more homeowners are becoming accustomed to prevailing interest rates and are considering it may be a good time to proceed with their relocation plans.
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):
What Would Motivate You To Move?
Now that you’ve gained insight into the motivations behind others’ decisions to relocate, take a moment to reflect on what factors would justify a move for you. Is it time to seize an opportunity and pursue your dream job, even if it means relocating? Are you seeking a neighborhood with richer amenities and a strong sense of community? Perhaps you’re in need of more living space, craving your next thrilling adventure, or aspiring to acquire a property that offers rental potential to supplement your income.
Additionally, consider this: Mortgage rates are anticipated to decline throughout the year. When that occurs, there will likely be a surge of buyers re-entering the market. Delaying your plans until rates decrease may result in facing heightened competition from these buyers.
So, does that mean it’s worth it to move now, even with rates where they are? The answer is: that it depends.
You’ll want to consider today’s mortgage rates, where they’re expected to go from here, and what would prompt you to want to make a change as you decide on your next steps. An expert can help with that.
Bottom Line
Other homeowners are getting used to rates and deciding to move. Let’s chat to go over what matters most to you and if it’s time for you to jump back into the market too.
