Why Would I Move With a 3% Mortgage Rate?

If you’re one of the lucky homeowners locked into a 3% mortgage rate, you might be asking yourself a very valid question:
“Why would I ever move?”

It’s a topic that’s come up a lot in recent conversations with clients, and for good reason. That low rate feels like a golden ticket — one you’re not eager to give up. But let’s pause for a second and ask a different question:
“Will I still be in this home five years from now?”

Thinking Long-Term

Whether it’s growing your family, downsizing, wanting more yard space, or dreaming of a new school district — life changes. And when it does, holding onto a low mortgage rate isn’t always the smartest long-term move.

According to the Home Price Expectations Survey by Fannie Mae (with input from over 100 housing market experts), home values are expected to continue rising through at least 2029. Here’s what the forecast looks like:

• 2025: +3.78%

• 2026: +3.36%

• 2027: +3.87%

• 2028: +4.18%

• 2029: +4.12%

On paper, those increases may seem minor. But let’s do the math.

If you’re eyeing a $400,000 home today, that same home could cost nearly $480,000 in five years — an $80,000 increase. That’s a real cost of waiting.

What About Mortgage Rates?

Many are holding out hope that mortgage rates will return to those record lows. Unfortunately, experts don’t see that happening. According to Fannie Mae’s forecast:

• 2025: ~6.4%

• 2026: ~5.9%

• 2027 and beyond: Expected to settle between 5.5%–5.8%

Yes, rates may come down slightly — but nowhere near the 3% mark we saw a few years ago.

So while waiting might feel safe, rising home prices and only modest rate drops could mean paying more overall when you’re finally ready to move.

The Real Question: When Does It Make Sense to Move?

If you love your home and it fits your life for the next decade, by all means — stay put. But if you’ve thought even once about needing a different layout, location, or lifestyle, now is the time to weigh your options.

Making a move in today’s market could actually save you in the long run.

If you’re wondering how all of this applies to your personal situation, I’d love to help. Whether you’re staying or considering a move, it’s smart to understand what your home is worth and what options are on the table.

Shoot me a message, comment below, or reach out for a personalized consultation.

Here’s a look at what’s happening right now in the Stillwater and Hudson school districts:

Local Market Snapshot – May 2025
• New Listings:
 Stillwater: 161
 Hudson: 73
 Total: 234 (Up 7.83% from last year)

• Average Prices:
 Stillwater: $590,565
 Hudson: $492,609
 Average: $541,587 (Up 9.31% YoY)

• Average Days on Market:
 Stillwater: 35 days
 Hudson: 48 days
 Average: 41.5 days

And if you'd like the most recent stats for another area, let me know — I’m happy to pull those numbers for you.