Why are more homeowners giving up their low mortgage rates in 2025?

In recent years, many homeowners were “locked in” to their homes because they had mortgages with very low rates (for example, around 3%), and they didn't want to lose that financial advantage. This is known as the “lock-in effect”: if you sell your home, you give up that low rate and would likely have to take a higher one when buying your next home. 

However, that trend is beginning to change, and more and more people are moving even if it means leaving their historically low rates behind. 

📌 Why is this happening?

1. Life priorities matter more than the rate
Personal needs, such as a growing family, job changes, retirement, or simply wanting to live in a better neighborhood, are starting to outweigh the low rate they had. 

2. The “lock-in effect” is softening
Although many people had mortgages below 3%, more homeowners are now willing to take on a higher rate if it means improving their quality of life or achieving their goals. 

3. The market shows signs of movement.
With rates currently relatively higher than historic lows but expected to stabilize or decline slightly in 2026, some homeowners feel more comfortable moving now before prices change or competition increases. 

👉 Bottom line: Yes, a low rate is valuable. But staying in a home that no longer fits your life may cost you more in the long run than the rate itself. 
Keeping Current Matters

If you're considering moving, buying your first home, or investing in a property — don't let fear of missing out on a rate hold you back. What really matters is finding a place that fits your current needs and goals