Mortgage Rates Are Above 7%—Should West Michigan Homeowners Still Sell and Move Up?
If you're sitting on a 3% or 4% mortgage, selling your home right now may sound a little crazy.
Why trade a historically low mortgage rate for one above 7%?
That's a legitimate question.
Freddie Mac's October 1, 2026 survey put the average 30-year fixed mortgage rate at 7.28%, up from 7.03% the previous week. A year earlier, the average was 6.34%. Freddie Mac's benchmark is based on conventional conforming purchase loans and does not represent the rate every borrower will receive.
So yes—your existing mortgage has real financial value.
But if you've outgrown your current West Michigan home, there's another number that deserves just as much attention:
Your equity.
The decision isn't simply whether you're willing to give up your current mortgage rate.
The better question is:
Does your complete financial and housing situation make moving worthwhile?
For some homeowners, the answer will be yes.
For others, it may be not yet.
And for some, staying exactly where they are may be the smartest move.
Let's look at how to figure out which one applies to you.
Quick Answer: Should You Sell and Move Up With Mortgage Rates Above 7%?
Selling and buying another home can still make sense with mortgage rates above 7% if your current equity, estimated sale proceeds, next-home price, financing options, housing needs and available inventory support the move.
A low existing mortgage rate should absolutely be considered—but it should not be evaluated by itself.
For a homeowner moving up, there are really two housing markets to analyze:
The market in which you're selling your current home.
The market in which you're buying your next home.
Understanding both is much more useful than asking whether this is simply a "good" or "bad" housing market.
First, Don't Underestimate the Value of Your Current Mortgage
If you have a mortgage in the 3% or 4% range, it may be one of the reasons you've stayed in a home that no longer fits.
That's understandable.
A higher interest rate can substantially change the principal-and-interest portion of a mortgage payment, particularly when you're also purchasing a more expensive home.
So I wouldn't tell a homeowner:
"Rates don't matter."
They do.
And I wouldn't build a move around the assumption that you'll simply refinance later.
Future mortgage rates aren't guaranteed.
Instead, we should evaluate whether the entire move works using information available today.
That begins with the home you already own.
How Much Equity Do You Have in Your Current Home?
Equity is generally the difference between your property's market value and what you still owe against it.
For example, imagine a homeowner whose property might sell for $350,000 and who owes approximately $175,000 on the mortgage.
That does not automatically mean they'll receive $175,000 at closing.
We would still need to estimate transaction expenses, applicable taxes, negotiated concessions, liens or other costs.
But it tells us something important:
The homeowner may have accumulated an asset that could help fund the next move.
That's why knowing what your home might realistically sell for matters.
If you haven't established that number yet, start with my guide to understanding what your West Michigan home may actually be worth. It explains why an online estimate, taxable value and market value aren't necessarily the same thing. Avila Home Group
West Michigan Sellers Have More Competition Than They Did a Year Ago
Another important part of this conversation is what's happening with inventory.
September data from Realtor.com showed approximately 2,515 active listings in Kent County, an increase of about 11.6% from a year earlier. Median days on market reached 37 days.
At the same time, the county's reported median sold price was approximately $370,000, up 4.6% year over year.
Grand Rapids showed an even larger inventory increase, with active listings up approximately 17% year over year and median market time reaching 42 days.
Those numbers don't describe every property or price range, but they do illustrate an important shift.
Buyers have more choices.
That means sellers need to pay closer attention to:
Initial pricing
Property condition
Preparation
Presentation
Competing listings
Buyer affordability
Marketing
The days of assuming that almost any asking price will eventually be rescued by a lack of inventory are increasingly difficult to justify.
I explain the pricing side in more detail in How Should You Price Your Home in West Michigan?. Avila Home Group
But there's another side to increasing inventory that move-up sellers shouldn't overlook.
More Inventory Can Be Good News When You Become the Buyer
This is where the move-up conversation gets interesting.
Suppose you're selling a starter home in the $300,000–$350,000 range and planning to purchase somewhere around $450,000–$550,000.
You're not participating in one housing market.
You're participating in two.
Market #1: Your current home
We need to know:
What recently sold?
What's currently competing with you?
What's pending?
How long are similar properties taking to sell?
Are sellers reducing prices?
How does your home's condition compare with the alternatives?
Then we evaluate:
Market #2: Your next home
Now the questions change:
How many suitable homes are available?
How long are they staying on the market?
Are sellers negotiating?
Are price reductions occurring?
What terms are buyers successfully negotiating?
What does your target purchase price do to the monthly payment?
Those markets can behave differently—even when the homes are only a few miles apart.
That's why I've built my move-up process around coordinating selling your current home and buying your next home as one move rather than treating them as unrelated transactions. Avila Home Group
Price Reductions Are Sending Sellers a Message
There's another September statistic worth paying attention to.
Approximately 21.3% of Grand Rapids-area listings had experienced a price reduction in Realtor.com's September data.
That does not mean home values are collapsing.
It does tell us that some sellers are discovering that their original asking price didn't produce the response they expected.
And when mortgage rates are above 7%, price matters differently.
Buyers aren't simply thinking:
"That's another $20,000."
They're considering what the additional purchase price may mean for:
Their down payment
Mortgage amount
Monthly principal and interest
Taxes
Insurance
Cash remaining after closing
That's why today's seller strategy isn't simply about choosing the highest possible list price.
It's about positioning the home against what buyers can choose today.
Your home's value is determined in a competitive marketplace—not by what you need to net, what a neighbor hopes their house is worth or what an automated valuation happens to display.
Should You Sell First or Buy First?
This is often the next question.
And there isn't one answer for everyone.
Selling first
Selling your current property before purchasing can provide greater certainty about your available proceeds and eliminate uncertainty about whether the current home will sell.
But you'll need a plan for where you'll live if the transactions don't line up.
Buying first
Buying the next property first can make the physical move easier.
However, you'll need to determine with your lender whether carrying the necessary obligations before selling is financially and practically feasible.
Coordinating both
Sometimes the transactions can be structured so the sale and purchase happen relatively close together.
But that introduces additional deadlines, contingencies and moving pieces.
I've written a separate guide explaining the advantages and tradeoffs of each approach: Should You Sell Your House Before Buying Another?. Avila Home Group
The Five Numbers I'd Want Before Making the Decision
Before telling a West Michigan homeowner whether moving up appears reasonable, I'd want five numbers.
1. Estimated current-home value
What does current market evidence suggest your property might realistically sell for?
2. Approximate mortgage payoff
What would need to be paid from the transaction?
3. Estimated net proceeds
After the mortgage payoff and estimated selling expenses, what might remain?
4. Target next-home price
What does the type of property you actually want cost in today's market?
5. Estimated next-home payment
Using current financing assumptions, what might the complete monthly housing expense look like?
That last calculation should include more than principal and interest. Depending on the property and loan, taxes, homeowners insurance, mortgage insurance, association fees and other expenses may matter.
Your lender should provide financing and qualification guidance specific to you.
Now we can put everything on the same page.
The Decision Isn't Just Sell or Don't Sell
I prefer three possible outcomes.
STAY
Your current home still works reasonably well, and keeping your existing housing expense outweighs the benefit you'd receive from moving.
That's a legitimate outcome.
PREPARE
You know the current home isn't your long-term answer, but the numbers don't work yet.
Maybe you need more savings.
Maybe we should prepare the property.
Maybe you want to reduce another debt.
Maybe we need to monitor inventory.
Maybe your lender gives you specific financial goals to work toward.
Now we have a plan instead of a question mark.
MOVE
Your equity, financing, housing needs, available inventory and comfort with the projected payment align well enough that you're ready to explore the next step.
None of these outcomes should be predetermined.
That's the point.
What If You've Simply Outgrown Your Current Home?
Not every move is primarily financial.
Sometimes the house simply doesn't work anymore.
Perhaps you need:
Another bedroom
A home office
A different layout
More or less outdoor space
Less maintenance
Better accessibility
Room for multigenerational living
A property that better fits your current lifestyle
I've covered that decision separately in Have You Outgrown Your Home? A West Michigan Move-Up Guide. Avila Home Group
The important distinction is that recognizing the problem doesn't mean you have to list tomorrow.
It means it's probably time to understand your options.
What Should West Michigan Move-Up Sellers Do Right Now?
Start planning before you start shopping.
Don't fall in love with the next house and then try to reverse-engineer what needs to happen with your current one.
Instead:
Current home → Equity → Financing → Next-home market → Transaction sequence → Timing
That's also the framework behind my Move-Up Buyers & Sellers strategy. Avila Home Group
If you're still early in the process, the West Michigan Seller Guide is another good place to start. It covers preparation, pricing, estimated proceeds, selling and buying, and the overall seller roadmap. Avila Home Group
Frequently Asked Questions
Is it a bad time to sell a home in West Michigan because mortgage rates are above 7%?
Not necessarily. Higher mortgage rates affect buyer affordability, but local selling conditions also depend on property type, price range, condition, inventory and competition. A homeowner who is also purchasing another property should evaluate both sides of the move rather than mortgage rates alone.
Should I keep my 3% or 4% mortgage instead of moving?
Possibly. A low mortgage rate has genuine financial value. The decision should compare the benefits and costs of staying with your estimated equity, housing needs, next-home price, financing options and projected payment.
Can I use equity from my current home to buy the next one?
Sale proceeds from an existing home may potentially be used toward the next purchase. The amount available depends on the sale price, mortgage and lien payoffs, transaction expenses and other factors. Your real estate professional and lender can help estimate the numbers involved.
Should I sell my current home before buying another home?
There isn't one correct sequence. Selling first, buying first and coordinating both transactions each have advantages and risks. Your available equity, financing qualifications, timing, risk tolerance and market conditions should help determine the strategy.
Are West Michigan home prices falling?
Current market conditions vary by municipality, property type and price range. Recent Kent County data show increased inventory alongside year-over-year price growth, illustrating why broad statements about prices “rising” or “falling” don't describe every property.
How far ahead should I start planning a move-up purchase?
Starting several months before you hope to move can provide time to estimate your current home's value, understand potential proceeds, speak with a lender, prepare the property and evaluate next-home inventory without unnecessary pressure.
You Don't Need to List Your Home to Start Planning
If you've been thinking:
“I'd move, but I can't justify giving up my mortgage rate,”
don't start with a listing agreement.
Start with the numbers.
At Avila Home Group, my Move-Up Strategy Review is designed to look at both sides:
Your current home
↓
Estimated equity and proceeds
↓
Your buying position
↓
Your next-home market
↓
Your estimated payment and timing
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Stay · Prepare · Move
Sometimes we'll discover that moving makes sense.
Sometimes we'll build a plan for later.
And sometimes I may tell you that staying exactly where you are looks like the better option.
The goal isn't to sell you on selling. It's to help you understand your next move.
Every move begins with a plan.
