The Better Question Isn’t “What’s the Rate?” It’s “What Does Your Life Need?”
/I’m going to say something that may make the internet’s armchair economists twitch a little: your life does not care what mortgage rates are doing. Your job transfer doesn’t care. Your third child sharing a bedroom with the Peloton definitely doesn’t care. Your knees don’t care that you have a fabulous interest rate on a three-story townhouse. And the two adults attempting to work from home at the same kitchen table really don’t care.
Life keeps happening whether mortgage rates are 3%, 5%, 6.5%, or something that makes us all collectively mutter an expletive under our breath. Which is why I think we’ve been asking the wrong question. Instead of “What’s the interest rate?” maybe we should be asking: “What does my life need right now?”
Yes, Interest Rates Matter
Before someone forwards this to their financially responsible uncle with the subject line “LOOK WHAT THIS REALTOR® IS TELLING PEOPLE,” let me clarify: of course interest rates matter. They affect your monthly payment, your purchasing power, and whether a particular house comfortably fits your budget or makes you survive exclusively on ramen noodles and anxiety. I’m absolutely not suggesting that you ignore the math. I’m suggesting that the math is only one piece of the decision.
Sometimes people aren’t waiting because buying doesn’t make financial sense. They’re waiting because they’ve picked an arbitrary number - usually 5% - and decided that life can resume once mortgage rates cooperate. And, friends… waiting for 5% isn’t really a plan. Nobody knows exactly when rates will hit 5%, how long they’ll stay there, or what home prices, inventory, and competition will look like when they do. You’re essentially letting the Federal Reserve become your life coach, and I’m not convinced Jerome Powell needs that much authority over whether you finally get a second bathroom.
A Great Interest Rate Doesn’t Make the Wrong House the Right House
Somewhere in Hampton Roads right now, someone is sitting inside a house with a gorgeous 2.875% mortgage rate…and the house no longer works for them. Maybe they bought it before they had kids. Maybe the kids have moved out and they’re maintaining 3,000 square feet they don’t need. Maybe their parents are getting older and they want to live closer. Maybe stairs have become an issue. Maybe their commute is slowly stealing their will to live. Or maybe they just looked around one Tuesday morning and realized: this house doesn’t fit my life anymore.
I understand the hesitation to give up a historically low rate. A 3% mortgage is an incredibly valuable thing to have. But a cheap mortgage on the wrong house can still be expensive. There is a cost to staying, too. Sometimes it’s financial - maintenance, utilities, commuting, repairs, or maintaining far more house than you need. Sometimes it’s opportunity. And sometimes it’s simply spending another three years living somewhere that no longer works because you’re waiting for an economic condition you cannot control.
Your home is a financial asset, but it’s also where you actually live your life. It’s your commute, your neighborhood, your stairs, your yard, your home office, your dinner table, and the place your friends and family gather. So instead of asking “What’s the rate?” I’d rather ask: What isn’t working anymore? What would make your everyday life better? What are you trying to move toward?
But What If Rates Do Drop to 5%?
Great! I will happily throw confetti. But you won’t be the only person who notices. There are plenty of would-be buyers sitting on the sidelines saying, “I’ll buy when rates come down.” If rates fall significantly, more buyers may enter the market, which could mean more competition, fewer seller concessions, and less negotiating power.
Does that mean it will definitely happen? Nope. That’s exactly the point: you cannot perfectly time this. A 5% interest rate does not automatically equal a better real estate transaction. A buyer at 6.5% with plenty of homes to choose from and room to negotiate may ultimately have a better buying experience than someone at 5% competing against six other offers. The interest rate is important. It just isn’t the whole story.
So, What Does Your Life Need?
I don’t think you should buy a house simply because interest rates are good, and I don’t think you should refuse to buy one simply because interest rates are bad. If moving would drain your savings, stretch your monthly budget beyond what feels comfortable, or leave you financially vulnerable, the answer may very well be: stay put. But if you can comfortably afford the move, the house solves an actual problem, and your life is ready for something different, I’m not sure I’d put that life on hold waiting for 5%.
Interest rates should inform your decision. They shouldn’t make it for you. Buy because your life has changed. Sell because your life has changed. Move because the home you’re living in no longer fits the life you’re actually living. Then let your lender, your REALTOR®, and - most importantly - your own financial reality determine whether the numbers support that move.
Because the goal isn’t to win the mortgage-rate lottery. The goal is to live in a home that works for your life.
And if you’re somewhere in Hampton Roads wondering whether your life is telling you it’s time for a move - even while mortgage rates are telling you to sit down and behave - let’s talk about it. We can figure out the math, and then we can figure out what actually makes sense for you.