DENVER, CO — A Denver-area couple says giving up their sub-3% mortgage rates was painful, but the move to a new house at 6.99% still made financial sense. Their decision came after selling two starter homes and buying again in a market where higher borrowing costs had cooled competition.
They say the tradeoff brought practical benefits that mattered more than preserving a low rate. Their purchase avoided bidding wars, opened the door to negotiation, and eventually gave them room to refinance more than once after closing. The experience also left them with a broader view of what matters most when the market is volatile: affordability, flexibility, and a monthly payment that fits the long term.
Higher mortgage rates changed the rules of the search
The couple bought their earlier homes when 30-year mortgage rates were unusually low. In 2021, their loans landed around 2.8%, a level they say was hard to let go of when they later shopped for a new place together.
By the time they were buying in 2024, borrowing costs had climbed sharply. Bankrate said 30-year fixed mortgage rates stood at 7.17% on Sept. 24, 2026, after reaching a 2026 low of 6.17% in February. That backdrop helped create a calmer market, with fewer buyers competing for the same homes.
For them, that shift mattered. Homes stayed on the market longer, prices softened on listings that lingered, and the pressure to move fast was lower than it had been during the ultra-cheap mortgage years.
Less competition gave buyers leverage on price and terms
Bill Ryze, a certified Chartered Financial Consultant and board advisor at Fiona.com, argues that high-rate periods can favor buyers because many would-be purchasers step back. He says that hesitation reduces competition and can make sellers more willing to negotiate.
The couple saw that firsthand. Their home search gave them more room to think, more leverage in the offer process, and a better chance of getting concessions that would have been harder to win when rates were at historic lows.
They also believe prices could rise again if rates fall and more buyers rush back into the market. That possibility helped shape their view that waiting for a perfect rate is not always the best strategy if a household can already afford the monthly payment.
Their new home came with features that helped justify the move
Their decision was not only about the math. The home they bought had several features they considered worth the higher rate, including a 425-square-foot cottage in the backyard, a backyard bar, and a basement sauna.
Just as important, they say they did not have to fight through a bidding war to get it. In their view, that was a major contrast with the more frenzied environment that often comes with low mortgage rates and heavy buyer demand.
They also negotiated a one-year rate buydown with their lender, which lowered the rate by a full percentage point during the first year to 5.99%. They say their current rate is now in the mid-5s after refinancing twice since the purchase.
Why they did not keep one starter home as a rental
Some mortgage advisers might have suggested holding onto one of the starter homes and renting it out, but the couple decided against that route. They wanted to pull equity out of both homes so they could use it toward a mortgage they felt they could manage.
They also did not want the responsibilities that come with being a landlord, especially for a first home they were emotionally attached to. For them, the decision was as much about peace of mind as it was about numbers on a spreadsheet.
Their choice reflects a broader point about moving in a high-rate environment: the cheapest monthly rate is not always the only factor. For some buyers, a cleaner financial structure and a simpler life can outweigh the appeal of hanging on to a lower mortgage rate.
Experts say buyers should focus on what fits today's budget
Financial planner Jessica Majeski, a certified financial planner with Northwestern Mutual, says even a 1% increase in interest rates can add several hundred dollars to a monthly payment. She adds that the long stretch of historically low borrowing costs has made it unrealistic for buyers to assume rates will quickly return to those levels.
Her advice is to buy only when the numbers work at today’s rate, while also leaving room for maintenance, taxes, and insurance, all of which can rise over time. That is the approach the couple says they took as well, treating any future refinance as a bonus rather than a requirement.
Majeski also says larger down payments can help bring rates down, and that buyers should pay close attention to private mortgage insurance if they cannot put 20% down. In some cases, adjustable-rate mortgages may also make sense for households that expect to sell or refinance before the rate resets.
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