If you've been waiting for mortgage rates to drop before making your next move, there are two housing stories happening right now that I think you should know about.

First, we have Fannie Mae's latest mortgage-rate forecast.

Then, there's something happening in Washington that could potentially change the conversation entirely: proposed legislation surrounding portable mortgages, called the MOVE Act.

And if you're sitting on one of those beautiful 2%, 3%, or 4% mortgage rates thinking, "There is absolutely NO WAY I'm giving this thing up," this conversation is especially for you.

Let's break down what's actually happening.

First: What Is Fannie Mae Predicting?

Before we get into the numbers, there's one important distinction:

Fannie Mae doesn't set mortgage rates.

Instead, Fannie Mae's Economic & Strategic Research Group analyzes what's happening in the economy and housing market and publishes forecasts for mortgage rates, home sales, home prices and other economic indicators.

So when you hear someone say, "Fannie Mae says rates are going to..." we're talking about a prediction, not Fannie Mae deciding what your mortgage rate will be.

And forecasts can—and do—change.

But here's the part I want you to pay attention to:

If you're waiting for some massive drop in mortgage rates before you move, current forecasts aren't necessarily giving us a reason to expect that to happen overnight.

Rates may improve.

They may fluctuate.

Economic conditions could change.

But waiting for the magical day when we suddenly wake up and mortgage rates have dropped dramatically isn't necessarily a strategy.

Especially if your current home no longer works for you.

Now Let's Talk About That Low Mortgage Rate You're Holding Onto

This is where things get personal.

If you purchased or refinanced your home when mortgage rates were historically low, you may be in a really interesting position today.

You might have:

• A 2%, 3%, or 4% mortgage rate that you REALLY don't want to give up
• Years of equity built into your current home
• A family that's grown since you purchased
• An income that's changed
• And a house that simply doesn't fit your life anymore

Maybe you need another bedroom.

Maybe two kids who were perfectly happy sharing a room five years ago are now teenagers. 😂

Maybe you work from home and your "office" is still the kitchen table.

Maybe you're dreaming about a bigger backyard, another bathroom, a three-car garage or just some breathing room.

You may be ready to move up—but your mortgage rate is keeping you exactly where you are.

And THAT is why this next story caught my attention.

What Is the MOVE Act?

The Making Ownership Viable for Everyone Act—or MOVE Act—is proposed federal legislation involving portable mortgages.

And the concept is fascinating.

What if your mortgage could move with you?

Right now, when most homeowners sell their house, their existing mortgage gets paid off.

Then they purchase another home and obtain a new mortgage at whatever interest rate they qualify for at that time.

A portable mortgage could potentially change that structure.

The concept would allow qualifying homeowners to potentially carry certain terms of their existing mortgage—including their interest rate and remaining balance—to a qualifying replacement property.

So yes...

If you're currently staring lovingly at your 3% mortgage rate, I know exactly where your brain just went. 😂

But before we get too excited, there's something REALLY important you need to know.

Can You Take Your 3% Mortgage With You Right Now?

No.

At least not under the typical conventional mortgage we're discussing here.

The MOVE Act is proposed legislation.

It has not suddenly made mortgages portable nationwide.

So please don't call your lender tomorrow and tell them Kristin said you're taking your 3% mortgage to your next house. 😂

We're not there.

There would be a legislative process, program requirements, eligibility rules and plenty of details that would need to be worked out before something like this could potentially become widely available.

But the fact that we're even having this conversation is significant.

Why Could Portable Mortgages Matter So Much?

Let's say you bought your home several years ago.

Today, you owe approximately $250,000 at 3.25%.

You've built equity.

Your income has increased.

And you're financially ready for a larger home.

There's just one problem:

You REALLY don't want to lose that 3.25%.

Under the typical structure today, when you sell, that mortgage gets paid off.

You then finance your next purchase using today's available mortgage rates.

And that's where many homeowners look at the new monthly payment and say:

"Never mind. We're staying here." 😂

Now imagine being able to preserve your existing mortgage rate and remaining balance and potentially apply them toward your next property.

There would obviously be questions about how additional financing would work if you're purchasing a more expensive home—and that's one of many details that would have to be addressed.

But you can probably see why the idea is getting attention.

What Does This Mean for You as a Bakersfield, CA Homeowner?

Here's where I want to bring these two stories together.

If you're sitting in your current home thinking:

"We desperately need more space, but I'm not giving up this interest rate..."

I understand why you feel stuck.

But before you automatically decide that moving isn't possible, let's actually look at your numbers.

How much is your home worth today?

How much do you still owe?

How much equity have you accumulated?

What would the home you actually want cost?

And what would your payment realistically look like?

Because here's something I see homeowners forget:

Your mortgage rate isn't the only thing that's changed since you bought your house.

Your equity may have changed too.

And depending on when you purchased your home in Bakersfield, CA, that equity could potentially give you more buying power than you realize.

You might run the numbers and decide:

"Nope. I'm staying right here with my 3% mortgage."

And that's completely fine.

Or...

You might look at your equity and the entire financial picture and realize:

"Wait a minute. Maybe we actually CAN do this."

That's the conversation I want homeowners to start having.

Not:

"Are rates back to 3% yet?"

But:

"What would moving actually look like for MY family?"

The Bottom Line

Fannie Mae's mortgage-rate forecasts aren't currently giving homeowners a reason to assume that some enormous rate drop is right around the corner.

At the same time, lawmakers are beginning to discuss completely different solutions to the mortgage lock-in problem—including portable mortgages through proposals like the MOVE Act.

Does that mean portable mortgages are coming tomorrow?

No.

Does it mean you should sell your house based on proposed legislation?

Absolutely not.

But does it mean this is something worth watching?

100%.

And I'll be watching it right along with you.

Because if you're a homeowner in Bakersfield, CA who's outgrown your current house but feels trapped by your interest rate, changes like this could eventually make for a very different conversation.

In the meantime, don't guess about whether you can afford to move.

Run the numbers.

You might be more "stuck" than you thought...

Or you might discover you have a lot more options than you realized.

FAQ

What is the MOVE Act?
The Making Ownership Viable for Everyone (MOVE) Act is proposed federal legislation intended to expand access to portable mortgages through Fannie Mae and Freddie Mac. It is a proposal and is not currently a nationwide portable-mortgage program.

Can I take my current mortgage rate with me when I move?
Generally, not with a standard conventional mortgage today. Portable mortgages are designed to allow certain mortgage terms to transfer to another property, but the proposed MOVE Act has not made this broadly available.

Does Fannie Mae set mortgage rates?
No. Fannie Mae does not set the mortgage rate a borrower receives. Its Economic & Strategic Research Group publishes forecasts based on housing and economic conditions.

Should I wait for mortgage rates to fall before buying another home?
That depends on your individual financial situation. Your current rate is only one part of the equation. Home equity, remaining mortgage balance, purchase price, down payment and expected monthly payment should all be considered.

Why could portable mortgages matter to Bakersfield, CA homeowners?
Some homeowners who purchased or refinanced when rates were historically low may want to move but hesitate to give up their existing mortgage rate. If portable mortgages eventually become more widely available, they could potentially give some qualifying homeowners another option when considering a move.

Kristin Zaben
Amjadi | Zaben Trifecta Group
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