Why More Homeowners Are Giving Up Their Low Mortgage Rate in South Snohomish and North King County

For years, many homeowners felt locked in by their historically low mortgage rates. But today we are seeing more and more people across Lynnwood, Edmonds, Mukilteo, Mill Creek, Everett, Bothell, Kenmore, and Shoreline choosing to move even though it means taking on a higher rate.
There are real life reasons behind this shift and most of them have nothing to do with chasing the lowest possible payment.

Below is what is happening nationally and how it shows up in our local market.

People Are Realizing They Stayed Put Longer Than They Planned

(The graphic showing how long homeowners have stayed in their homes)

Many homeowners stayed in place during 2020 through 2023 because locking in a two or three percent mortgage rate felt like winning the lottery. The unintended result was that people put their lives on hold.
Now those delays are catching up.

Locally, I am meeting homeowners who
• Need more space than their current home allows
• Want to downsize from a home that no longer fits their lifestyle
• Are relocating for a new job or was called back into the office
• Are ready to move closer to family or easier commuting routes

Life events are starting to take priority over the monthly rate conversation.

Changes in Household Needs Are Outgrowing Low Rate Comfort

(The graphic showing reasons homeowners are motivated to move)

Across South Snohomish and North King County, the most common motivators I am seeing are
• Growing families who need more usable space
• Empty nesters who want a simpler floor plan
• People looking for multi generational layouts
• Homeowners wanting newer construction or updated features they do not have

A low rate is nice, but if the home does not fit your daily life anymore, it becomes a tradeoff that no longer makes sense.

Equity Is Playing a Major Role in Local Decisions

Many homeowners now have more equity than they ever imagined.
This is especially true here, where average home prices rose sharply
• Snohomish County up 7.6 percent in 2024 and nearly 2 percent again in 2025
• King County up nearly 10 percent in 2024 and another 1.5 percent in 2025

That equity gives sellers the ability to
• Offset the cost of today’s rates
• Make a stronger down payment
• Move into a home that better fits their lifestyle
• Maintain long term wealth that benefits them for years

Your rate matters, but your equity can reshape the financial picture in a way most people do not fully realize until we walk through it together.

Buyers Are Learning That Payment Options Are More Flexible Than They Thought

There are more tools available today than during the lowest rate years
• Rate buydowns paid by sellers or builders
• Adjustable rate options for buyers planning shorter stays
• Refinancing potential if rates ease
• Equity transfers that reduce overall borrowing needs

In our local market, these tools make a real difference. A seller who wants to move can often structure their sale and purchase in a way that feels far more comfortable than expected.

Bottom Line for Our Local Market

People are not moving because they want a higher mortgage rate – nobody really WANTS that! They are moving because their life is changing and their home needs to change with it.
And that is exactly what we are seeing across South Snohomish and North King County right now.

If you have been staying put only because of your low rate, it may be worth having a conversation about what your options really look like. Your next move might be more attainable than you think.