Top 5 Reasons To Leave Your 3% Rate Behind and Buy Now

By Kerry Ellison

Over the past 30 years, Kerry has proven herself time and time again by remaining in the top tier of Central Arkansas real estate. As her business grew, Kerry saw the need to start a team to continue providing clients with the best experience possible.

Thinking about moving but still don’t want to let go of your 3% mortgage rate? A 3% mortgage rate may feel like gold, but many homeowners don’t realize how much money they’re setting aside by holding on to it.

Picture this: You’ve built significant equity, buyers finally have leverage, and better homes are available without bidding wars, yet the fear of a higher rate keeps you stuck. Once you see the real numbers, the smarter move becomes clear. Let me walk you through why buyers are upgrading now and how waiting could end up being the most expensive choice.

Why today’s market creates opportunity. The biggest shift is equity. Homeowners who bought during the 2-3% era have, in many cases, gained over $100,000. That equity can become your down payment on a larger home, a lifestyle upgrade, or a debt-reduction tool. You are sitting on an opportunity that did not exist when you first bought. At the same time, today’s market offers more inventory, more choices, and less competition. That combination gives buyers leverage we haven’t seen since before 2020.

Why lifestyle changes matter more than your rate. Life happens. Families grow. Work from home becomes permanent. Schools change. Some owners simply feel cramped. A low rate does not solve those needs. Staying stuck to protect a number on a mortgage can lead to years of frustration. The right home in the right location creates comfort, function, and long-term stability. Those benefits have value beyond interest rates.

Why refinancing gives you flexibility. One of the biggest myths is that once you buy at a higher rate, you are locked in forever. Most lenders now offer zero-cost refinance programs or rate buy-down options. You can secure the home you want today and refinance later when rates ease. Buyers who wait often find themselves in bidding wars and rising prices once rates drop. Acting now lets you capture the home and lock in the lower rate later.

Why inventory is finally giving buyers power. For the first time in years, buyers are not fighting through ten-offer bidding wars. Listings are increasing, and sellers are more willing to negotiate on repairs, closing costs, and price. This is a window buyers have not seen since before the pandemic. When rates fall, competition will return, inventory will tighten, and prices will climb again.

Why waiting can be the most expensive choice. A small rise in home prices can erase any monthly savings you think you’re protecting by keeping your 3% rate. Missing another year of appreciation can cost tens of thousands. If you wait until the market heats up again, you face higher prices, more competition, and fewer choices. It is often more costly to stay put than to move forward.

If you want to compare your current rate with today’s options, we have a calculator that breaks it all down. You can review your equity, assess your buying power, and make the most informed decision for this market. If you need help or want a personalized analysis, call 501-725-1227, email info@theellisongroup.com, or visit theellisongroup.kw.com. Your 3% rate was a win, but your next chapter can be an even bigger one.