Should I Relocate Considering the Current Mortgage Rates?

As mortgage rates surged in recent years, many homeowners halted their moving plans. Perhaps you did the same, hesitant to sell and face a higher mortgage rate for your next home. But is this approach still the most suitable for you?

In the current market, statistics indicate that an increasing number of homeowners are becoming accustomed to current interest rates and considering the possibility of relocating. Mark Zandi, Chief Economist at Moody's Analytics, elaborates on this trend, stating:

"Listings have seen a slight increase due to life events and job transitions, which are compelling locked-in homeowners to consider selling their homes. Homeowners are gradually recognizing that mortgage rates are unlikely to return anywhere close to the rates on their current mortgages."

A recent study conducted by Bank of America reveals the factors prompting homeowners to consider selling their homes, even with current interest rates (refer to the visual below for details).

What Would Motivate You To Move?

Having understood the motivations behind others' decisions to move, pause for a moment to contemplate what factors would render a relocation worthwhile for you. Is it the prospect of pursuing your dream job, even if it's not within your immediate vicinity? Are you seeking a neighborhood with greater amenities and a stronger sense of community? Perhaps you're in need of additional living space, eager for a new adventure, or interested in a property that offers rental potential to supplement your income.

Another factor worth pondering is the trajectory of mortgage rates, which are anticipated to decrease throughout the year. Consequently, a significant influx of buyers is expected to re-enter the market once this occurs. Should you choose to postpone your plans until rates decline, you'll inevitably face heightened competition from these buyers.

Therefore, does this imply that it's advantageous to proceed with a move now, despite the current interest rates? The response is: it varies.

As you contemplate your next moves, it's crucial to factor in current mortgage rates, their projected trajectory, and the factors motivating your desire for change. Seeking guidance from an expert can be invaluable in navigating these considerations.

Bottom Line

Similar to other homeowners, many are adjusting to current interest rates and opting to relocate. Consult with a nearby real estate agent to discuss your priorities and determine whether it's the right time for you to reenter the market as well.