Reply to Mortgage rates are set to stay elevated

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]No one is talking about the people locked into 2.75% rates are *never* going to sell their homes.[/quote]

I don't know about anyone else, but we have a 3% rate and we want to move. But since we don't want to switch from a 3% rate to an 8% rate, especially since we really need to move to a slightly larger home (currently live in a 1000 square foot row home), we are currently saving aggressively and once we hit our target savings, we'll list our home and use savings+equity to pay cash for a house. At most we'll take out a mortgage for 100k or less, if that's necessary to get a home we can stay in long term.

Barring any emergencies, we should hit our target number in early 2025. No idea where rates will be then and we do have to keep an eye on them since it will impact what we sell our house for (we'd be okay if they stay the same, if they go up we might have issues getting as much equity out and have to save a bit longer).

When we have mentioned this plan to others, we've been surprised at how many other people are also working on plans to be able to buy for cash. Though some intend to hold onto their homes with low rates as investment properties, not all can do that.

I think we will see a lot of people shift to cash purchases if they can in order to avoid higher mortgage rates. Even if it means moving to a lower cost of living area.[/quote]

This is our plan too. We don't want to move soon, but maybe 5-10 years, so we will have built up pretty good equity and savings. [/quote]

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