Why Homeowners Are Choosing to Move Now Even with Higher Mortgage Rates

It’s not easy to walk away from a 3% mortgage rate. For many homeowners, that low rate has kept them anchored in place. But life doesn’t stand still—and in 2025, more and more sellers are deciding that their current home just isn’t working anymore.

While a low interest rate is appealing, it doesn't fix a home that no longer fits your life.

Whether it’s not enough space, too many stairs, or being too far from family, real-life needs are driving people to make a move despite today’s mortgage rates (see graph below):

Recent data shows the number of homeowners with rates under 3% is falling as more sellers enter the market. At the same time, the share of new mortgages with rates over 6% is increasing.

What’s Driving Homeowners to Sell in 2025?

A survey by Realtor.com reveals that 79% of homeowners considering selling right now are doing it out of necessity, not financial gain. And for most, those reasons have nothing to do with the market. (see graph below):

Do any of these reasons resonate for you, too?

You’ve Outgrown Your Home
A growing family, aging parents moving in, or simply needing more breathing room can quickly make your home feel too small.

You Have Too Much Space
Empty nesters are finding freedom in downsizing—fewer rooms to clean, less upkeep, and lower monthly bills.

You Want to Be Near Family
Whether you’re helping care for loved ones or just want to be closer to them, family often outweighs the numbers.

Your Relationship Status Has Changed
Divorce, separation, or starting a new chapter with someone can all create the need for a fresh start.

Your Job Relocated You
A new opportunity across the state—or across the country—might be worth the move.

What About Waiting for Rates to Drop?

Yes, experts expect mortgage rates to gradually decline, but no one’s predicting a return to the 3% range anytime soon (see graph below):

If you’ve been holding out, waiting for a big drop, it might not come soon enough to match your current needs. And the longer you wait, the more time you spend feeling stuck in a space that just doesn’t work anymore.

According to Realtor.com, nearly two-thirds of potential sellers have been thinking about moving for over a year. If that’s you, the real question becomes:

How much longer are you willing to press pause on your life?

Bottom Line

That “temporary” home you bought in 2020 may have served its purpose. But it might not support the life you’re living now—and that’s okay.

Mortgage rates matter, but they’re only part of the equation. What really matters is finding a home that fits your current lifestyle.

Let’s talk about what’s changed, and what kind of move would actually take your life forward.

^{The information and opinions in this article are not investment advice. Tim Stice makes no guarantees about accuracy or completeness. Always do your own research and consult a professional before making financial decisions. Tim Stice is not liable for any loss or damage resulting from reliance on this content.}