How are we supposed to sell and buy at the same time with these rates?

You’re right that going from 3.8% to around 6–7% feels brutal, and a lot of owners are feeling that same “locked‑in” effect, but people are still moving when the upgrade or life change is big enough.
Ways people are making the math work now:
• Buy below your max budget and use equity from your current home to keep the new payment comfortable instead of stretching to the top of what you qualify for.
• Ask for seller or builder rate buydowns (like a 2‑1 buydown) or closing‑cost credits so your effective rate/payment is lower for the first couple of years while you wait for a chance to refinance.
• Decide based on time horizon: if the next place is a 7–10+ year “long‑term home,” many people accept today’s rate, with a plan to refinance if rates ease later, rather than waiting indefinitely for 3–4% to come back (which forecasters don’t expect soon).

You’re not alone in feeling “locked in.” Many homeowners with mortgage rates around 3–4% feel the same way, because moving today often means taking on a new loan closer to 6–7%. This situation is so common that economists call it the “mortgage rate lock-in effect.” Millions of homeowners are holding onto their homes simply because they don’t want to give up their low interest rate.

But despite that challenge, people are still selling and moving every day—usually because life circumstances outweigh the rate difference.

Are People Actually Selling Homes Right Now?

Yes, homes are still selling, although fewer people are moving compared to past years. The low-rate lock-in effect has slowed housing inventory because homeowners who secured low rates are reluctant to sell and take on a higher mortgage.

However, homeowners still move due to things like:

Job relocation

Family changes

Downsizing or upsizing

Lifestyle changes or retirement

Moving to a new area

In fact, experts expect housing activity to gradually improve as people adjust to current rates and focus more on life goals than the interest rate they are leaving behind.

Strategies to Make Selling and Buying Work

If you’re thinking about selling your home and buying another with today’s interest rates, there are several strategies that can make the transition easier.

1. Use Your Equity as a Down Payment

Many homeowners who bought 5–10 years ago have built significant equity. Selling your home and applying that equity to your next purchase can reduce the size of your new mortgage and help offset the higher rate.

2. Sell First, Then Buy

This is the most common approach. Selling your current home first allows you to use the proceeds as your down payment and avoids carrying two mortgages at once.

Some sellers negotiate a rent-back agreement, where they stay in the home for a short period after closing while they search for their next property.

3. Bridge Loans

A bridge loan allows you to tap into the equity in your current home to purchase a new one before selling. These short-term loans “bridge the gap” between buying and selling.

Once your existing home sells, the bridge loan is typically paid off.

4. Home Equity Line of Credit (HELOC)

Some homeowners use a HELOC to borrow against the equity in their current home and use it as a down payment on the next home. The loan is then paid back after the home sells.

The Real Question: Does the Move Improve Your Life?

The biggest mistake many homeowners make is focusing only on the mortgage rate. While the rate matters, it’s just one part of the equation.

People still move because of:

Better location

More space or less maintenance

Lifestyle changes

Financial opportunities

For many homeowners, the right home and lifestyle upgrade outweigh the difference in interest rate.

Bottom Line

If you have a 3.8% mortgage, it’s completely normal to feel hesitant about moving to a 7% rate. That feeling is shared by millions of homeowners and is a major reason inventory has stayed low in recent years.

But people are still selling and buying homes every day. The key is understanding strategies like using your equity, selling before buying, bridge loans, or rent-back agreements to make the transition financially workable.

In many cases, the smartest first step is simply getting a home equity estimate and payment comparison to see what your next move would actually cost before deciding whether to stay or sell.

You’re not alone—almost everyone with a low rate feels this right now.

People are still moving, but they’re being more strategic. Most are using their equity to keep the new loan smaller, negotiating seller credits or rate buydowns, and focusing on a payment they’re comfortable with—not just the rate.

In reality, the move usually happens when life makes sense—not when rates are perfect. The key is running the numbers on your specific situation and seeing if it works for you today, not in theory.

Hi Jeorge,
You are not alone! Many people are in the same situation and feel the same way. There are strategies that can make it a little easier to "swallow" such as rate buydowns that we have recently had success in having the seller pay for. These can be temporary buydowns in hopes that rates eventually get to a lower permanent rate you can then refinance to, or permanent buydowns which are more pricy. That is why it typically is the goal to get a seller credit to pay for it. I would also add that people are selling right now, however the majority are motivated as they have a life event happening like relocation, divorce, or even growing family that no longer fits the property and cannot wait any longer.