07 Nov Should I wait to sell my house because of mortgage rates?

Q. My problem is that I want to sell my house. And then I would buy something else, smaller, now that my kids are out of the house. But interest rates are crazy high. My current mortgage is only 3.2%. I will make a profit on my house but I will still need a mortgage. Should I just stay and wait for lower rates?
— Homeowner

A. It’s a great question.

This is a very common dilemma right now, and you’re not alone in feeling it.

Many homeowners are hesitating to sell because they’re enjoying historically low mortgage rates and are unsure what they could afford at today’s higher rates, said Howard Milove, a wealth advisor with Access Wealth in East Hanover.

He said as result, fewer homes are coming on the market, which is one reason home prices have remained relatively strong, especially in places like New Jersey. Low supply and steady demand continue to support prices, he said.

Milove said he advises against letting higher mortgage rates be the sole deciding factor.

“There is no guarantee that rates will meaningfully drop in the near future,” he said. “The Federal Reserve has taken some steps that could eventually lead to lower rates; however, long-term mortgage rates are influenced by many factors, and the direction from here is uncertain.”

It’s also worth considering the broader picture, he said: if rates do come down, more buyers may enter the market, which can drive home prices higher. In that scenario, you might find yourself paying more for the home you want, even if the mortgage rate is lower, he said.

One advantage you do have is flexibility.

“If you find the right home now and the rate feels higher than you’d like, you can always refinance later if rates improve,” he said. “Refinancing does come with costs, but if you plan to stay in the new home for several years, the long-term benefit of a lower rate can outweigh those upfront expenses.”

In the end, the decision comes down to your lifestyle, timing, and how well the “next home” fits your needs.

“If your current house no longer suits you and you’re ready for the next chapter, it may be worth moving forward rather than waiting on something as unpredictable as interest rates,” he said.

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This story was originally published in October 2025.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.