Why More Barrington Homeowners Are Giving Up Their Low Mortgage Rate

If you are like a lot of homeowners here in Barrington, you’ve probably had this exact thought: “I’d really like to move… but I just can’t bring myself to give up my 3% mortgage rate.”

That is completely fair. Locking in that rate was likely one of your biggest financial wins, and financially, it can be very hard to let go. But here is the reality I’m seeing on the ground:

A rock-bottom interest rate cannot make up for a home that no longer fits your life.

Life changes. Families grow, careers shift, and sometimes your home needs to evolve along with you.

The good news?

You aren’t the only one coming to this realization.

The "Lock-In Effect" Is Starting To Ease

For the past year or two, many homeowners have been frozen in place by what experts call the "lock-in effect." essentially, you feel stuck because you don’t want to trade your current low rate for a higher one on your next home.

However, data from the Federal Housing Finance Agency (FHFA) shows that this grip is slowly starting to loosen.

As you can see in the graph below, the share of homeowners with a mortgage rate below 3% (represented in yellow) is slowly declining as more people decide to sell.

Simultaneously, while some people with rates over 6% are first-time buyers, the number of current homeowners with a rate above 6% (the blue) is rising as they accept the new market reality for their next home.

While the shift might look subtle on paper, it is actually quite dramatic in the real world. The share of mortgages with a rate above 6% just hit a 10-year high (see the graph below). This tells us that more people are accepting today’s rates as the "new normal" rather than putting their lives on hold forever.

Why Move Now if It Means a Higher Rate?

It’s simple: Life doesn't pause for interest rates.

Whether it's a need for better schools in Barrington 220, a shorter commute, or just more space, families eventually reach a breaking point where the house that once fit perfectly simply doesn't anymore—regardless of how good the interest rate is.

As Chen Zhao, Head of Economic Research at Redfin, explains:

“More homeowners are deciding it’s worth moving even if it means giving up a lower mortgage rate. Life doesn’t standstill—people get new jobs, grow their families, downsize after retirement, or simply want to live in a different neighborhood. Those needs are starting to outweigh the financial benefit of clinging to a rock-bottom mortgage rate.”

First American refers to these primary life motivators as the 5 Ds. I see these playing out in the Barrington market every day:

• Diplomas: People with college degrees or advanced certifications typically earn more. Maybe you bought your starter home years ago, but now that your career has advanced, you have the buying power to move up to your forever home.
• Diapers: Your family is growing. If you are welcoming a new baby, that cozy starter home might suddenly feel cramped. You need more bedrooms and a bigger yard.
• Divorce: Whether it’s ending a marriage or starting a new chapter, big relationship changes often create an immediate need for a new place to call home.
• Downsizing: This is huge in our area. Maybe the kids have moved out and you are ready to simplify. You want a smaller footprint, less maintenance, and more freedom to travel.
• Death: If you’ve recently lost a loved one, priorities often shift. You may realize you want to be closer to family because life is too short to live far from the people who matter most.

The Cost of Waiting

Whatever your specific reason, here is what you need to weigh: Yes, your low rate is a financial asset. But staying put means keeping your life plans on hold.

According to Realtor.com, nearly 2 in 3 potential sellers have already been thinking about moving for over a year. That is a long time to press pause on your goals and your family's needs.

So, maybe the question isn’t: “Should I move?”

The real question is: “How much longer am I willing to stay in a house that no longer fits my life?”

We have already seen rates come down from their peak earlier this year, and forecasts suggest they may ease a bit more in 2026. When you combine that stability with the very real reasons you need a new home, it may be enough to finally move the needle.

Bottom Line

Life doesn’t wait for the perfect mortgage rate.

Maybe you shouldn’t either.

With rates down from their peak and expected to dip slightly more in 2026, making a move in Barrington may be more feasible than you think. If you are ready to explore what is possible in today's market, let’s talk.