Your Needs Matter: A Fresh Perspective on Today's Mortgage Rates

Dated: June 14 2023

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If you're thinking of selling your home, it's likely there has been a significant change in your life circumstances. While factors such as current mortgage rates play a crucial role in your next purchase decision, it's important not to lose sight of the primary reason you wish to make a change.

Indeed, the historically low mortgage rates we've enjoyed in past years have experienced a rise, and that has an impact on affordability. The current rates have led some homeowners to defer selling, hesitant to acquire a higher mortgage rate for their next property. As Danielle Hale, Chief Economist at Realtor.com, points out:

"... homeowners who secured a 30-year fixed rate in the 2-3% range aren't necessarily eager to trade that for a rate in the 6-7% range."

However, your lifestyle and changing needs should matter more. Here are several common reasons why individuals want to sell their homes today. Any of these may outweigh the benefit of keeping your existing mortgage rate.

As Ali Wolf, Chief Economist at Zonda, says in a recent tweet:

"First-time and move-up buyers are both active... the latter driven by life changes. Divorce, marriage, new higher paid job, and existing home unsuitable all referenced."

Relocation

Shifting jobs, wanting to be nearer to friends and family, wanting to live in the perfect location, or simply desiring a change of scenery can all be a motivation to move to a new area.

For instance, if you live in the suburbs but have just secured your dream job in NYC, you might contemplate selling your current home and relocating to the city.

Upgrading

Many homeowners want to sell their property and move into a larger home.  They are looking for more space to entertain, a home office or gym, or additional rooms to accommodate a growing family.

For instance, if you live in a condominium or townhouse and decide it's time for more space, or if your family size is increasing, it may be the right time to look for a home that better suits these needs.

Downsizing

In light of the rising cost of living, homeowners may choose to sell their property to minimize maintenance and expenses. They may also sell because their house has more space than they need due to a recent move-out. Yet another desire to downsize could arise from a ecent retirement or a desire for a change of scenery.

For instance, if you've just entered retirement and wish to move somewhere warmer with less upkeep, a smaller home in a new place may better suit your new lifestyle.

Change in Relationship Status

Marriage, separation, or divorce often prompt individuals to sell and buy a different home.

For instance, if you've recently separated, cohabiting might prove challenging. Selling and downsizing could be a more desirable option.

Health Concerns

Homeowners facing mobility limitations or health issues that call for specific living conditions or modifications may sell their current property to find one that is more suitable.

For instance, you may wish to sell your home and utilize the proceeds to finance a unit in an assisted-living facility.

With the ascent in mortgage rates, affordability presents a challenge – but your needs and lifestyle matter, too!  As an insightful article from Bankrate suggests:

"Deciding whether it's the right time to sell your home is a deeply personal decision. It entails contemplating various critical financial and lifestyle-based questions before putting your home on the market... Your future plans and aspirations should be a major component of the equation..."

So if you're thinking of selling your home in order to enjoy a new lifestyle, let's connect. I can provide expert assistance to guide you through the process and help you find a home that can deliver on the "new" you are looking for.

Blog author image

Steve Milone

Steve has been a realtor in the Metro Atlanta area for several years. Before joining eXp Realty he was initially with Keller Williams for almost four years; consistently performing as one of the top 1....

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