Most homeowners today have mortgage rates far below current levels, making them hesitant to move—but the right mortgage strategies can make a new home purchase more appealing.
1. Most Homeowners Have a Mortgage Rate Under 5%
73.3% of homeowners currently have an interest rate below 5%, according to FHFA data.
This means many homeowners are reluctant to sell because moving would mean taking on a much higher mortgage rate. The psychological barrier of giving up a low-rate mortgage is real and directly impacts inventory levels.
Homeowners considering a move need strategies to offset this jump in borrowing costs.
2. The Southwest Market is Shifting Toward Buyers
The Southwest housing market (which includes Denver, CO) shows a growing number of sellers compared to buyers, according to recent data.
This shift signals that the market may become more balanced or even tilt in favor of buyers in 2025. More inventory means better negotiation power, price flexibility, and potential seller concessions—advantages that can help offset higher rates.
Now may be the time for buyers to re-enter the market before competition heats up again.
3. Homeowners Have a Limit on Acceptable Mortgage Rates
A recent survey shows most homeowners would only accept a mortgage rate below today’s average 30-year fixed rate of 6.72%.
More than half of respondents indicated they would consider moving if rates reached 5.5% or lower. With today’s rates exceeding that threshold, homeowners need alternative financing options to bridge the gap and improve affordability.
One solution is using mortgage buydown programs. A 2/1 buydown or a 3/2/1 buydown can temporarily reduce the initial mortgage rate, bringing it below 5.5% in the first years of the loan. This eases the payment shock and allows buyers to enter the market with lower costs upfront.
The table below breaks down how these strategies work and how they can make today’s market more accessible for homeowners considering a move.
The Right Strategy Can Make Your Next Move Possible
If high rates are holding you back, exploring creative mortgage options could open the door to your next home.
Thinking about upgrading? Get a personalized report showing how these strategies could lower your mortgage rate and make your move more affordable. Contact us today to see what’s possible for your situation!
