If you’re a homeowner in the Valley of the Sun with a low mortgage rate, you might be feeling a bit caught between a rock and a hard place. You’ve probably considered making a move—maybe you need more space, want to change neighborhoods, or are just looking for a home that feels like a better fit. But then reality sets in with today’s interest rates, and suddenly, that enticing idea gets pushed aside.
This scenario is playing out for many homeowners across the country. Millions locked in at historically low rates back in 2020 or 2021 are now hesitant to let go of what feels like a great deal, even if their current home no longer suits their lifestyle.
This phenomenon is known as the “lock-in effect,” and it’s a significant factor in the decision-making process. However, it doesn’t mean you’re out of options. If you’ve been on the fence about whether to stay or go, consider these three questions to help you gain clarity and make a decision that feels right.
Is your current home still working for your life—or just your loan?
This is a crucial question to ponder. When you look beyond the mortgage rate and the spreadsheets, is your home still supporting your daily life?
Perhaps what once felt spacious now seems cramped, or maybe your home feels too large and quiet since the kids moved out. Your needs might have shifted—maybe you’re working from home more, caring for aging parents, or have welcomed a new family member. Or it could be that you’ve simply outgrown the space emotionally. What used to feel like a dream home now feels like a never-ending to-do list.
It’s easy to brush aside those feelings and focus solely on your current rate. But when your home no longer fits your lifestyle, it’s worth considering what it’s costing you to stay—not just financially, but also emotionally and mentally. The right home doesn’t have to be perfect, but it should simplify your daily life, not complicate it.
What would a move really cost you—and what might it make possible?
It’s true that interest rates are higher now than they were a few years ago. However, that doesn’t automatically mean moving isn’t a viable option for you. What’s important is how the entire picture looks for your situation.
Many homeowners in our area are sitting on significant levels of equity. As of early 2024, the average mortgage-holding homeowner in the U.S. holds approximately $299,000 in equity, according to ICE’s Mortgage Monitor report. That’s an increase from $274,000 at the end of 2022 and a notable rise from $182,000 at the start of the pandemic, based on CoreLogic’s Homeowner Equity Insights report.
This equity could serve as your down payment on a new home, potentially lowering the amount you need to borrow, reducing your monthly payment, or even helping you avoid private mortgage insurance.
Additionally, consider the lifestyle benefits a move could bring. Perhaps it would place you closer to family, provide your kids with access to better schools, or offer the home office or outdoor space you’ve been longing for. Maybe it means downsizing and freeing up more cash each month, or finally settling in a neighborhood that feels like home.
Moving isn’t just a financial decision; it’s also about enhancing your quality of life. When you weigh both the gains and the costs, you might find that the numbers aren’t as one-sided as they initially seem.
If you stay, are you staying intentionally—or just avoiding a hard choice?
Choosing to stay put is perfectly valid. For some, it’s the right decision. However, it should be a conscious choice rather than a default option.
Ask yourself: If I decide to stay for the next three to five years, what changes or investments would I need to make to ensure this home truly works for me? Would I renovate the kitchen that’s become outdated? Convert the spare room into a functional office? Redesign the backyard so it’s actually usable?
Staying doesn’t have to mean settling for less. Sometimes, finding peace with your current home involves creating a plan for improvement—whether through minor updates, strategic renovations, or simply rethinking how you use your space.
However, staying without a plan can lead to years of frustration. Often, those quiet compromises can add up to something more costly than moving would have been.
Final Thoughts
Feeling “stuck” can be frustrating. The good news is, you’re not as trapped as you might think. You’re just facing a decision that requires some thoughtful consideration.
You don’t need to have all the answers right now. But by asking the right questions about your lifestyle, goals, and finances, you can gain clarity. Whether you decide to stay or move, the aim isn’t to time the market perfectly. It’s about making a choice that supports your life and future.
If you’re uncertain about what comes next, let’s have a conversation. We’re here to help you weigh the pros and cons, look at real numbers, and explore your options. This isn’t about pushing you into a sale; it’s about giving you the clarity and confidence you need to move forward in the direction that feels right for you.
