If you locked in a mortgage rate below 4% during the pandemic, congratulations—you made one of the best financial decisions of the decade. But now you might feel stuck. Maybe your family has outgrown your home, you’ve landed your dream job in another city, or you’re ready to downsize. The problem? Today’s mortgage rates, hovering around 6% mean that moving could cost you hundreds or even thousands of dollars more each month.
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You’re not alone. Over half of American homeowners (52.5%) are in the same boat, holding onto mortgage rates below 4% while feeling trapped by what economists are calling “golden handcuffs.”
The Housing Market Standstill
This phenomenon has created a ripple effect across the entire housing market. The Federal Housing Finance Agency estimates that the “lock-in effect” has prevented 1.72 million home sales between 2022 and 2024 alone.
Here’s what’s happening:
Inventory Crisis: National housing inventory remains roughly 14% below pre-pandemic levels. In some markets, available homes are more than 50% below what we saw before COVID-19.
Slower Transactions: Home sales have plummeted to multi-decade lows, with the typical home now sitting on the market for 62 days—a full week longer than last year.
Affordability Challenges: With median list prices still at $425,000 and mortgage rates in the 6% range, many would-be buyers find themselves priced out of the market entirely.
The Real Cost of Staying Put
While holding onto your low mortgage rate seems financially prudent, staying in a home that no longer fits your needs comes with its own set of costs:
There’s a Better Way: Keep Your Rate AND Move On
Here’s what most homeowners don’t realize: you don’t have to choose between your low mortgage rate and your life goals. There’s a third option that lets you have both.
Instead of selling, you can convert your current home into a rental property. This strategy allows you to:
✓ Keep your low mortgage rate and all the equity you’ve built
✓ Generate monthly rental income that can cover your mortgage payment and then some
✓ Move to a home that better fits your current needs
✓ Build long-term wealth through property appreciation and rental income
✓ Maintain flexibility for the future—you can always move back or sell when rates improve
Where We Come In
The challenge? Being a landlord from across town—or across the country—isn’t easy. That’s where professional property management makes all the difference.
At MoveZen Property Management, we handle everything involved in turning your home into a profitable rental property:
Tenant Placement: We market your property, screen applicants thoroughly, and place qualified tenants who will treat your home with respect.
Rent Collection: No more chasing down payments. We ensure rent is collected on time, every time.
Maintenance & Repairs: From routine maintenance to emergency repairs, we have a network of trusted contractors and handle all the details.
Legal Compliance: We stay up-to-date on landlord-tenant laws, fair housing requirements, and local regulations so you don’t have to.
Financial Reporting: You’ll receive detailed monthly statements showing your rental income, expenses, and net profits.
Peace of Mind: Move to your new home knowing that your investment property is in capable hands.
The Math Makes Sense
Let’s look at a real example:
Say you have a $400,000 home with a 3.5% mortgage rate. Your monthly payment might be around $1,800 (principal and interest). In today’s market, that same home could rent for $2,500-$3,000 per month.
Even after property management fees (typically 8-10% of monthly rent) and setting aside reserves for maintenance, you could generate $500-$800 in positive cash flow each month—all while keeping that coveted low mortgage rate.
Meanwhile, if you sold and bought a similar home with a 6% mortgage rate, your monthly payment would jump to approximately $2,400—costing you an extra $600 per month with nothing to show for it.
When Will Rates Come Down?
Economic forecasters have mixed predictions. Fannie Mae projects mortgage rates could edge down to 5.9% by the end of 2026, but the Mortgage Bankers Association believes rates may remain in the 6-6.5% range for the next three years.
The truth is, no one knows for certain. What we do know is that waiting for rates to return to pandemic-era lows could mean putting your life on hold indefinitely—and those sub-4% rates may never return.
Your Next Move
Don’t let your golden handcuffs keep you from living the life you want. Whether you’re relocating for work, need more space, or want to downsize, you have options beyond selling.
Converting your home to a rental property isn’t just about preserving your low mortgage rate—it’s about creating an additional income stream and building long-term wealth while having the freedom to move forward with your life.
Ready to explore whether this strategy makes sense for your situation? Let’s talk. We offer free consultations to help you understand the rental market in your area, estimate potential income, and determine if holding onto your property as a rental is the right financial move.
To read more, visit Low Mortgage Rates Are Keeping Homeowners in ‘Golden Handcuffs’.
