If the housing market feels a little stuck right now… you’re not wrong.
A large number of homeowners are sitting on mortgage rates in the 2-4% range, while today’s rates are still above 6%.
So the question becomes: “do I really want to give up my low rate just to move?” For most people, the answer is NO.
What Are People Doing Instead?
Instead of moving, more homeowners are choosing to stay and upgrade their current home.
This “stay and upgrade” trend is growing:
• 44% say renovating is their best option
• Only 13% think buying feels realistic
• 71% are planning a renovation in the next 2 years
So rather than selling, people are putting money back into their current home.
Here’s The Interesting Part…
About 63% say they’ll need financing, but nearly 40% don’t understand how it works. That’s a big gap.
A lot of homeowners aren’t clear on how to use their equity, what options they have, or what it actually costs.
If You’re Thinking About Renovating…
There are usually 3 main options:
- HELOC
Works like a credit card. You draw what you need, pay it down, and reuse it over time for projects/repairs/upgrades, etc. - Fixed Second MortgageThis is like a 30 year fixed second mortgage where you get all the cash at once.
- Cash-Out REFI
This one is less desirable because they don’t want to touch that low rate first mortgage.
Each one works differently, and picking the wrong one can cost you $.
What We’re Seeing Right Now
We’re doing a lot more HELOCs and fixed second mortgages right now for borrowers who want to buy investment properties and put their equity to work.
We’re also seeing borrowers add ADUs to their primary home and use their equity to fund those projects.
What This Really Means
The housing market isn’t frozen, it’s just shifting. Instead of moving, homeowners are staying put and upgrading. That’s keeping inventory tight and changing how people approach real estate right now.
If you’re thinking about renovating, making a move, or just want to understand what your options look like, feel free to reach out. Happy to talk it thru with you!
