For Homeowners Who Bought When Mortgage Rates Were Below 3%, Today's Market Is Paralyzing. Some Say '2.5% Is Basically Free Money'

Core Insights - Homeowners who locked in low mortgage rates during the pandemic are now feeling financially trapped as current rates exceed 6% [1][2] - Many homeowners express a reluctance to sell or upgrade due to the attractive rates they secured, viewing them as "golden handcuffs" [2][3] Group 1: Homeowner Sentiment - The Reddit community r/MiddleClassFinance shared personal stories highlighting the emotional and financial attachment to low mortgage rates, with some homeowners stating they would never sell their homes [2] - Homeowners with rates as low as 2.5% to 3.5% express satisfaction with their current living situations, indicating a preference to remain in their homes rather than face higher rates [2][3] Group 2: Reasons for Moving - Some homeowners have moved for reasons beyond financial considerations, such as better school districts and family support, despite facing significantly higher interest rates [3] - Decisions to relocate are often driven by lifestyle changes rather than purely financial calculations, with some families prioritizing happiness and well-being over cost [3]