More Than Rates: What Really Drives Real Estate Decisions

When it comes to buying or selling a home, conversations often center around mortgage rates, economic forecasts, and national headlines. And while those things matter, they often overshadow the real reasons most people make a move—reasons that are deeply personal and often entirely within their control. Here are just a few of the meaningful factors that influence real estate decisions every day:

Cash Flow

Whether it’s having enough for a down payment or unlocking equity from a sale, cash is a powerful motivator. It can fund retirement, help start a business, support travel or education, or simply give you breathing room in your monthly budget. Selling a home and tapping into built-up equity can open up opportunities you’ve been waiting for.

Aesthetics and Fit

Every home is unique—its layout, land, angles, and views. Maybe your home is the perfect fit for a buyer out there right now. Or maybe you’ll come across a home that feels like it was made for you. These intangible qualities often carry more weight than spreadsheets.

Lifestyle and Location

Changes in work, school zones, commute times, or neighborhood vibes all contribute to quality of life. Sometimes, moving isn’t about rates—it’s about aligning your home with your current life.

Timing

Sometimes it’s just the right moment. A new chapter. Whether you’re upsizing, downsizing, or simply ready for a change, timing is personal—and it’s a big part of what makes a move feel right.

Of course, the financial side of the decision still matters. Interest rates, inflation, and housing inventory all play a role. But instead of letting rates be the reason to wait, consider the full picture:

1. Interest Rates Aren’t the Whole Story

Yes, today’s rates are higher than they were in the 2010s—but still historically moderate. For most of the three decades before 2000, mortgage rates averaged over 6%, and for much of that time, they were above 8% (¹). Despite current rates, inventory is growing, home values remain strong, and more buyers are entering the market.

In fact, compared to this time last year, 9% more people believe it’s a good time to buy—and over 60% still say it’s a good time to sell (²). The market is moving.

2. Higher Rates Can Be Offset

Selling a home and reclaiming your equity could actually put you in a stronger financial position—even with a higher rate on your next loan. That equity could pay off higher-interest debts (like credit cards or car loans), or be reinvested in assets with strong returns (like the stock market).

We’re happy to run the numbers with you. One of our team members focuses specifically on this kind of financial modeling, and they’d love to help you analyze your options.

3. Refinancing Is Always on the Table

If rates drop in the future, refinancing is a great option to lower your monthly payment. Even a 0.5–1% drop can make a significant difference over time and can offset the upfront cost of closing on a loan (³). It’s a good safety net if the financial landscape shifts.

The Bottom Line

Buying or selling a home is a big decision that touches every part of life. While the financial side is important, it’s not everything. The right move often comes down to timing, lifestyle, opportunity, and purpose. As Fred Bolstad of U.S. Bank put it:

“For aspiring home buyers, the right time to buy really depends on your individual goals and financial situation. If you are in the financial position to afford the payments on a home you find and love, there is no need to wait.”

We couldn’t agree more. (1) Forbes Mortgage Interest Forecast

(2) Fannie May, The Home Purchase Sentiment Index® (HPSI), June 2025

(3) Bankrate