Why North Jersey Homeowners Are Staying Put and Hesitant to Sell
If you bought your home or refinanced a few years ago, there's a good chance you're sitting on a mortgage rate that looks pretty attractive today.
Maybe it's 3%. Maybe it's 3.5%.
Now you're thinking about moving. Maybe you need more space, want to downsize, or simply feel that your current home no longer fits your lifestyle.
But there's one thing holding you back.
You don't want to give up that mortgage rate.
I understand that hesitation. And according to a recent Realtor.com report, millions of homeowners across the country are facing the same decision.
The question I think homeowners should be asking isn't simply whether they should give up their low mortgage rate.
It's whether staying in their current home still makes sense for their lives and their finances.
Nearly Half of Homeowners Have Lower Rates
An October 22, 2026, Realtor.com article titled "The Great Housing Freeze" highlights just how many homeowners are holding on to historically low mortgage rates.
According to the report, 49% of outstanding mortgages have fixed rates below 4%. Another 29% have rates between 4% and 6%.
That means approximately 78% of homeowners with outstanding mortgages have rates below 6%.
Compare that with the 7.4% average mortgage rate cited in the article, and it's easy to understand why so many people are reluctant to move.
For someone who secured a 3% mortgage during the pandemic, purchasing another home today could mean taking on a significantly higher monthly payment.
Even if the new home costs roughly the same as their current property.
That's what economists call the mortgage rate lock-in effect.
And it's one of the factors contributing to the shortage of available homes in many housing markets.
What Does This Mean for Bergen and Passaic Counties?
Here in North Jersey, we have communities where homeowners put down roots and stay for years.
Think about towns like Wayne, Ridgewood, Fair Lawn, and surrounding areas throughout Bergen and Passaic Counties.
People buy homes, raise families, build equity, and become part of their communities.
Eventually, their needs change.
A growing family may need another bedroom. Empty nesters may find themselves maintaining a house that's much larger than they need. Someone approaching retirement may want a different lifestyle or fewer responsibilities.
Under normal circumstances, those life changes often lead to homes being listed for sale.
But when homeowners have exceptionally low mortgage rates, the financial decision becomes more complicated.
Some may decide to renovate instead of moving. Others may postpone downsizing or relocating.
And when homeowners who might otherwise sell decide to stay, fewer properties become available for buyers.
That can create challenges for buyers searching for homes in desirable North Jersey communities.
The Cost of Staying Isn't Always Just Financial
One thing I encourage homeowners to consider is whether they're focusing too much on the mortgage rate and not enough on the reasons they wanted to move in the first place.
Let's say you purchased your home years ago and have a mortgage rate of 3.25%.
That's a great rate.
But perhaps your children have moved out, and you're maintaining four bedrooms, a large yard, and more living space than you actually use.
Or maybe your family has grown, and you're trying to make a house work that simply doesn't have enough room.
A low mortgage rate is valuable, but it doesn't automatically mean your current home is still the right home.
There are other costs to consider:
Property taxes and insurance
Ongoing maintenance and repairs
Heating and cooling unused space
Renovations needed to make the home more functional
The time and effort involved in maintaining the property
The impact your current home has on your everyday lifestyle
I'm not suggesting that everyone with a low mortgage rate should sell.
Far from it.
But I do think it's worth looking at the entire picture before deciding that staying is automatically the better financial choice.
Your Home Equity Could Change the Equation
Another important part of this conversation is home equity.
If you've owned your home for several years, particularly in a North Jersey community where property values have appreciated, you may have accumulated substantial equity.
That equity could potentially help offset some of the challenges associated with purchasing another property at a higher mortgage rate.
For example, selling your current home might allow you to make a larger down payment on your next property, reducing the amount you need to finance.
For someone downsizing, it may even be possible to purchase a less expensive home with a relatively small mortgage or no mortgage at all.
Of course, every situation is different.
You have to account for selling expenses, closing costs, property taxes, the price of your next home, and your overall financial goals.
But I wouldn't make a decision about moving without first understanding what your current property might realistically sell for.
Your mortgage rate is only one part of your financial picture. Your equity matters too.
Should You Wait for Mortgage Rates to Come Down?
This is where things get interesting.
Some homeowners are waiting for mortgage rates to decline before they consider selling.
That sounds reasonable.
But what happens if rates do come down?
Homeowners who have been reluctant to move may decide to list their properties. At the same time, buyers who have been waiting for better financing conditions may reenter the market.
That could mean more available homes, but also more competition from buyers.
The important thing to remember is that lower mortgage rates don't automatically guarantee a better buying or selling opportunity.
Home prices, inventory, buyer demand, and your personal financial situation all play a role.
And nobody can tell you with certainty exactly where mortgage rates or home prices will be six or twelve months from now.
I would rather help a homeowner understand what their options look like today than encourage them to make a major decision based entirely on what might happen tomorrow.
When Does Staying Put Make Sense?
There are plenty of situations where keeping your current home may be the right decision.
If your home meets your needs, your monthly payment is comfortable, and you don't have a compelling reason to move, holding on to a low mortgage rate can be a significant financial advantage.
I would also be cautious about selling if moving would stretch your finances or require you to take on a payment you're uncomfortable with.
Sometimes making improvements to your current home is more practical than purchasing another property.
And sometimes waiting simply makes sense.
But there's a difference between staying because you're happy with your home and staying because you feel financially trapped by your mortgage.
That's an important distinction.
When Might Selling Be Worth Considering?
On the other hand, there are circumstances where moving could make sense despite a higher mortgage rate.
Maybe you're relocating for work, moving closer to family, or looking to simplify your lifestyle.
Perhaps you've built enough equity to make your next purchase more manageable than you originally expected.
Or maybe the cost of maintaining your current home is becoming harder to justify.
Before making a decision, I'd want to look at a few things:
What could your current home realistically sell for?
How much equity would you have after selling expenses?
What would a suitable replacement home cost?
What would your new monthly housing expenses look like?
How long do you expect to stay in your next home?
Does moving improve your overall financial situation or quality of life?
Once you have those numbers, the decision becomes much clearer.
You may discover that staying is the right move.
Or you may find that selling is more realistic than you initially thought.
Either way, you're making an informed decision rather than letting one number determine your future.
Final Thoughts
If you ask me, "Steve, should I sell my house and give up my 3% mortgage?" I'm not going to automatically tell you yes or no.
I'm going to ask why you're thinking about moving.
What isn't working about your current home? What would you want in your next one? How much equity have you built? And what would the financial picture look like if you made a move today?
Those answers matter more to me than simply comparing two mortgage rates.
The Realtor.com report makes it clear that millions of homeowners are holding on to low-rate mortgages. And I understand why.
But I also believe your home should continue to serve your needs, not just provide you with a favorable interest rate.
If you're considering selling a home in Bergen or Passaic County but aren't sure whether giving up your current mortgage makes financial sense, let's look at the numbers together.
The Stephen Tinney Group at Coldwell Banker Realty can help you understand your home's current market value, evaluate your options, and determine what makes the most sense for your next chapter.
The goal isn't simply to sell your house.
It's to help you make a decision you'll feel confident about long after the move.
Source: Keith Griffith, Realtor.com, "The Great Housing Freeze: Half of Homeowners Have a Sub-4% Mortgage Rate - and Few Reasons To Move," October 22, 2026. National mortgage statistics referenced are from Realtor.com's analysis of Federal Housing Finance Agency data.