Why More Homeowners Are Giving Up Their Low Mortgage Rate

If you’re like many Massachusetts homeowners, you’ve probably thought: “I’d move… but I don’t want to give up my 3% rate.” Totally fair — that rate was one of your biggest wins.

But here’s the truth:
A great rate can’t fix a home that no longer fits your life. And across MA, more homeowners are finally deciding it’s time to move anyway.

The “Lock-In Effect” Is Finally Cracking in Massachusetts

For years, homeowners across the state felt stuck — not wanting to trade a super-low rate for today’s higher ones. But new FHFA data shows that’s starting to shift. The share of homeowners sitting on sub-3% rates is slowly shrinking, while more MA buyers are taking on 6%+ rates for their next home because they need to move.

Why? Life won’t wait.

Why More MA Homeowners Are Moving Now

From Boston to the North Shore to Middlesex County, homeowners are making moves because life changes — and their homes just don’t match anymore. Redfin’s Chen Zhao puts it perfectly:

“People are deciding it’s worth moving even if it means giving up a lower mortgage rate. Life doesn’t stand still.”

First American calls these motivators the 5 Ds, and MA homeowners are experiencing all of them:

• Diplomas: Career growth and higher income mean it’s time to upgrade.
  
  
• Diapers: Expanding families need more space than that starter condo or townhouse.
  
  
• Divorce: Life transitions often require new housing.
  
  
• Downsizing: Empty nest? Tired of maintaining a big colonial?
  
  
• Death: Loss often leads people to move closer to family in towns like Woburn, Reading, Stoneham, and beyond.
  
  

Here’s the Real Question

If your home no longer works for you, how long will you put your life on hold for the sake of a rate?

Realtor.com says nearly 2 in 3 sellers have already been thinking about moving for over a year. That’s a long pause on your family’s goals.

And with mortgage rates already down from their peak — and expected to tick down again heading into 2026 — the move you’ve been delaying may actually make more sense now.

Bottom Line

Life doesn’t wait for the perfect rate — and maybe you shouldn’t either.
If you want to see what’s truly possible in your local MA market, let’s talk. I can walk you through your options and help you make the smartest move for your situation.