Moving On from Your Old Rate: What Really Matters Now

June 24, 2025

Rear exterior of a single-story home with a furnished patio and lawn, with four people outdoors.

Still Holding On to That 3% Rate? Here’s Why It Might Be Time To Let Go

Chart shows mortgages below 3% falling from 29.0% to 20.9%, while mortgages at 6% or higher rise from 12.0% to 18.0%.

We get it — letting go of a 3% mortgage rate is tough. That ultra-low rate probably feels like one of the best financial decisions you ever made. But here’s the truth: sometimes what worked perfectly five years ago just doesn’t work anymore.

And no interest rate – not even 3% – is worth staying in a home that no longer fits your life.

Whether it's space that's too tight, too big, or just too far from the people who matter most, more and more homeowners are deciding to move forward — even if it means taking on a higher rate.

What’s Actually Moving People Right Now?

According to a recent survey from Realtor.com, 79% of current homeowners considering a sale say they’re doing it because they need to – not because the market’s ideal. And for most, the reasons are personal, not financial.

Chart of sellers’ reasons for moving, led by seeking a different community at 46%.

Here’s what’s driving those moves:

You’ve outgrown your space: Maybe you’ve added a family member or your kids are growing fast. Maybe your parents need a place in your home now. Whatever it is, the space you have just isn’t cutting it anymore.
You’re ready to simplify: Maybe the house is too big, the maintenance is too much, or the stairs just don’t work for your lifestyle anymore.
You want to be near family: Whether it’s being closer to help with grandkids or aging parents, proximity matters more than ever.
Life has changed: Divorce, a new relationship, or a big career shift – life doesn’t always go as planned, and your home needs to keep up.
You’re relocating for work: A job change can mean it’s time for a whole new city – and a new start.

These are real reasons — life reasons — and they often matter more than holding out for a perfect mortgage rate.

Yes, Rates Are Higher — But They’re Not the Whole Story

Chart comparing 2025 year-end mortgage rate projections, ranging from 6.10% to 6.80%.

It’s true that mortgage rates today are hovering in the 6% range. And no, we’re not expecting a return to those pandemic-era 3% rates anytime soon.

But here’s something to consider: how long are you willing to wait for rates to fall, if they even do? How much longer do you want to feel stuck in a space that doesn’t work for your needs?

If you’ve been putting off a move for more than a year (and most people have), ask yourself:

What’s more valuable right now — your quality of life, or your interest rate?

Bottom Line

The home that was right for you in 2020 might not be the one that supports your lifestyle in 2025. And that’s okay. It’s normal to outgrow a home. It’s normal for your needs to evolve. And it’s smart to recognize when it’s time to make a change.

A mortgage rate is just one piece of the puzzle. Let’s talk about the whole picture — and what kind of home will actually work for your life today.

Amber Johnson, Founder
Pillar Real Estate
805.835.3425
[email protected]
1345 Park St. Paso Robles, CA 93446
DRE# 01925434