Why More Homeowners Are Giving Up Their Low Mortgage Rate

Why More Oregon & Washington Homeowners Are Finally Giving Up Their Low Mortgage Rate

If you own a home in Portland or Vancouver, you’ve probably had this exact thought: “I’d love to move… but I just can't give up my 3% mortgage rate.”

That is entirely fair. That rate is one of your biggest financial wins. But here is the reality we are seeing across the Pacific Northwest right now: A great interest rate won’t make up for a home that no longer fits your life.

Whether it's a commute that has become a nightmare, a need for more space in Clark County, or a desire to downsize in Multnomah County, life changes. And surprisingly, you aren't the only one deciding to make a move despite the rates.

The "Lock-In Effect" Is Losing Its Grip in the PNW

For the last two years, the housing market was frozen by the "lock-in effect"—homeowners staying put simply to keep their cheap mortgage. But data from the Federal Housing Finance Agency (FHFA) shows that this ice is finally starting to crack.

• The Trend: The share of homeowners with a sub-3% rate is declining.

• The Shift: The number of homeowners with a rate above 6% is rising (hitting a 10-year high).

What does this mean for you? It means you aren't an outlier if you sell now. More of your neighbors in Beaverton, Camas, and Gresham are accepting today's rates as the "new normal" because waiting indefinitely just isn't an option anymore.

Why Move Now? The "5 Ds" Driving Local Moves

Why are people in Oregon and Washington trading a 3% rate for a 6%+ rate? Because life doesn't pause for the Federal Reserve.

First American calls these the "5 Ds," and we see them driving the market in our area every day:

1. Diapers: You’ve outgrown your space. Maybe you need a bigger yard in Ridgefield or an extra bedroom in Hillsboro for a growing family.

2. Diplomas: A new degree or career boost means more buying power. You are ready to upgrade from your starter home to your forever home.

3. Divorce: A split often necessitates selling the shared home and finding two new, separate spaces.

4. Downsizing: The kids have moved out. You no longer want to maintain a big property in the suburbs and want a low-maintenance condo in the Pearl District or the Vancouver Waterfront.

5. Death: Losing a loved one often shifts priorities, bringing people closer to family.

According to Realtor.com, nearly 2 in 3 potential sellers have been thinking about moving for over a year. That is a long time to keep your life on hold just to save a few percentage points.

The Local Advantage: Inventory Is Finally Up

Here is the silver lining for Oregon and Washington sellers: We finally have more inventory.

Unlike the scarcity of 2021-2023, inventory levels in both Portland and Southwest Washington have climbed in late 2024 and 2025.

• For You as a Seller: This means when you do sell, you actually have homes to choose from. You aren't selling into a void; you can find that next house that actually fits your needs.

Bottom Line

The question isn't "Should I move?" The real question is: "How much longer am I willing to stay in a house that doesn't fit my life?"

Life doesn't wait for the perfect rate. With mortgage rates expected to stabilize or dip slightly in 2026, moving is more feasible than you think.

Stuck on the fence? Let’s run the numbers. We can compare the cost of your current rate vs. the value of a home that actually works for you.

CALL TODAY: (503) 300-6614