3% Mortgage Rates: Gift of a Lifetime or Low-Rate House Arrest?

A homeowner planning to relocate or downsize might find the higher costs related to higher mortgage rates too much of a hurdle to clear. What are their options?

A wrapped gift with a red bow is shaped like a house.
(Image credit: Getty Images)

For many Americans, homeownership became a reality during the years of ultra-low mortgage rates following the 2008 financial crisis, an environment that essentially lasted all the way up until the Federal Reserve's campaign to raise interest rates, which started last year. Many were even able to take advantage of refinancing opportunities as recently as 2021 or late 2020 when rates dipped below 3%. In fact, over 50% of all outstanding mortgages originated in 2020 or after.

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Adam Jordan, CIMA®, AAMS®
Director of Investments/CCO, Paul R. Ried Financial Group, LLC

Adam Jordan is Director of Investments and Chief Compliance Officer at Paul R. Ried Financial Group, an RIA firm based out of Bellevue, Wash., specializing in serving individual retirees. Adam joined the firm in 2002. His responsibilities include designing the overall asset allocation strategies, conducting in-depth market analysis, investment manager due diligence, as well as carrying out the firm’s compliance responsibilities. Adam is also the author of the firm’s client-focused market commentaries.