Start With Why You Want to Move
If you are thinking about selling your house, chances are something in your life has changed. Maybe your household needs more room. Maybe work is taking you somewhere new. Or maybe the home that once fit your life no longer does.
Mortgage rates are an important part of deciding what to buy next. But they should not cause you to lose sight of why you wanted a change in the first place.
The question is not just whether you want to give up your mortgage rate. It is whether your current home still meets your needs.
That does not mean ignoring affordability. It means looking at your finances and your lifestyle together, rather than letting one number make the entire decision.
Put Mortgage Rates in Perspective
Mortgage rates have climbed from record lows, affecting affordability. That has led some homeowners to delay selling because they do not want a higher rate on their next home.
Danielle Hale, Chief Economist at Realtor.com, described that hesitation this way:
“. . . homeowners who locked in a 30-year fixed rate in the 2-3% range don't necessarily want to give that up in exchange for a rate in the 6-7% range.”
Those figures illustrate the trade-off Hale described, not a statement about what rates are available when you read this. The underlying concern is straightforward: keeping a lower mortgage rate can be a strong reason to stay.
But it is not the only reason worth considering. Your changing needs may matter more than holding on to your existing rate.
Ali Wolf, Chief Economist at Zonda, also pointed to life changes as a motivation for buyers:
“First-time and move-up buyers are both active . . . the latter driven by life changes. Divorce, marriage, new higher paid job, and existing home unsuitable all referenced .”
Rather than treating that observation as a description of a particular market moment, consider the reasons behind it. Does your home still support the life you are living?
Five Reasons a Move May Make Sense
1. Relocating for Work or Personal Priorities
A new job, a desire to be closer to friends and loved ones, a dream location or simply a change of scenery can motivate a move.
For example, if you live in the suburbs and land your dream job in New York City, you may consider selling your home and moving to the city for work.
In that situation, start with the purpose of the relocation. What would moving allow you to do? How important is that change to your plans?
Your mortgage rate belongs in the discussion, but so does the reason you are considering a different location.
2. Moving Into a Larger Home
Many homeowners sell because they need more space. That may mean room to entertain, a dedicated home office, space for a gym or additional bedrooms for a growing household.
If you live in a condo and want more room, or your household is growing, it may be time to consider a home that fits those needs better.
Before you focus on a larger home, identify exactly what is missing from your current one. Is it another bedroom? A separate place to work? Room for loved ones to gather?
Make your search about the space you need, not simply the idea of a bigger house. Use that list to keep the reason for your move clear as you consider affordability.
3. Downsizing for a Different Lifestyle
Some homeowners sell because they want less house to maintain and lower costs. Inflation-driven increases in everyday expenses can also motivate that decision.
Others find that someone has moved out and they have more space than they need. Retirement or a desire for a change can also make downsizing worth considering.
For example, you may begin retirement wanting warmer weather and a smaller home with less maintenance. A different home may better suit that new lifestyle.
Ask yourself what you want to leave behind and what you want next. Is your priority less upkeep, less unused space or a different location? Be specific about what downsizing should accomplish for you.
4. Responding to a Relationship Change
Marriage, divorce and separation are common reasons people sell and buy different homes.
If you have separated, continuing to live under one roof may be difficult. Selling and moving into a smaller home may be options to consider.
If you are getting married, consider what you both need from the home you will share. The starting point is the same: identify the living arrangement you are trying to create.
A mortgage rate deserves attention, but so do the personal circumstances behind the move. Give both a place in the decision.
5. Addressing Health or Mobility Needs
Health concerns or mobility challenges may require specific living arrangements or home modifications. A homeowner may decide to sell and find a place that works better for those needs.
For example, you may be considering selling your home and using the proceeds to help pay for a unit in an assisted-living facility.
Start by identifying what your living arrangement needs to provide. Which needs does your current home meet, and which remain unresolved?
That keeps the conversation focused on suitability as well as finances, without assuming that staying or selling is automatically the right answer.
Weigh Your Finances and Your Future Together
Higher mortgage rates can create affordability challenges. Your lifestyle and housing needs still deserve consideration.
Bankrate frames the decision this way:
“Deciding whether it’s the right time to sell your home is a very personal decision. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market. . . . Your future plans and goals should be a significant part of the equation . . . ”
Before deciding, write down your main reason for moving, what your next home must provide and the financial questions you need answered. Keep that list in front of you as you explore your options.
Take the Next Step With a Clear Purpose
If you are ready to explore selling, connect with a real estate professional who can help you navigate the process and look for a home that meets your needs.
For the mortgage side of that conversation, reach out to Ed Parcaut. Bring your list of priorities and questions so you can discuss financing alongside the life change you are planning.
