Career Moves vs. Mortgage Rates: Why Your Home Might Be the Reason You’re Stuck — And How Some Companies Are Helping

Today’s job market is filled with exciting opportunities, remote roles, and cross-country promotions—but for many professionals, one unexpected factor is keeping them locked in place: their mortgage.

I’m currently helping a young professional relocate to Colorado Springs from Washington, D.C., and the financial incentives included in his company’s relocation package are unlike anything I’ve seen. Not only is he receiving assistance with moving costs, but his company is also offering a drape and carpet allowance, along with closing cost coverage and extended temporary housing. It's a powerful example of how top employers are recognizing just how financially difficult it has become for employees to relocate—especially when leaving behind a historically low mortgage rate.

The Hidden Cost of Staying Put: A 2.5% Mortgage

According to the Federal Housing Finance Agency, the average interest rate on an existing mortgage is 2.5% lower than the current market rate. For someone with a $400,000 loan, trading a 3% rate for a 7% one means $1,000 more per month—or $12,000 a year. That’s a huge financial burden for professionals who might otherwise be eager to accept a new role or promotion in a different city.

Between 2020 and 2022, millions of Americans locked in once-in-a-generation mortgage rates. Today, that locked-in rate has become a kind of “golden handcuff,” discouraging career mobility despite the potential for higher pay or growth. Especially for homeowners who purchased during the pandemic, the idea of giving up a sub-3% rate is enough to stay put, even if it means saying no to advancement.

Lower Raises, Higher Housing Costs

During the Great Resignation (early 2021 through late 2022), switching jobs could lead to a 20% pay increase. That number has now dropped significantly. According to Bank of America, by mid-2023, job switchers making over $100,000 were seeing only a 6–7% raise.

Meanwhile, real wages haven’t kept pace with inflation. A May 2025 Brookings report notes that although nominal wages have risen, real purchasing power has stagnated—especially in mid- and lower-income industries. Add rising home prices, interest rates, and limited inventory to the equation, and it's no wonder many professionals are putting off buying altogether.

Career Cities, Costly Housing

Cities like Austin, TX, and even smaller job-growth markets are pricing out talent. Between 2019 and 2022, Austin saw home prices increase by over 40%. Even as prices stabilize, the lack of affordability lingers.

This has created a stark contradiction: the cities offering the best job opportunities often offer the worst housing affordability. Many of my clients relocating to Colorado Springs are drawn here for the quality of life and career opportunities—but that move doesn’t come without thoughtful planning, creative financing, or employer support.

Why You Need a Team in This Market

This is exactly why working with a professional team—a skilled realtor and a trusted lender—is more important than ever. My lender team and I work hand-in-hand to build a strategy that fits your timeline, lifestyle, and long-term goals. Together, we act as your financial and real estate coaches, crafting a plan that gives you the confidence to move forward.

In this fast-changing market, our process provides the clarity and confidence you need to make smart decisions.

✨ Ready to get clear? Reach out and let’s make a plan that works for you.

Turning Your Home Into a Long-Term Investment

For some homeowners facing relocation, selling isn’t the only option. In fact, I specialize in helping those relocating away from Colorado Springs keep their current homes and convert them into investment properties.

This route allows homeowners to:

• Preserve their historically low mortgage rate

• Build long-term equity

• Maintain flexibility as they explore new opportunities

To make the transition seamless, I connect my clients with TriStar Property Management, a company I personally use and trust. Sharon at TriStar has managed my own investment property, and she is one of my all-time favorite people in this business. Her team handles everything from tenant placement to maintenance with the same care and professionalism I would give for my own property.

📞 TriStar Property Management Phone: 719-247-6061
🌐 Website: www.tristarpropertymgmt.com

If you're moving out of the area and want to explore how to keep your home working for you, let’s talk.

Employers Stepping Up

To help overcome the financial hurdles, some companies are offering expanded relocation packages. These can include:

• Closing cost assistance

• Temporary housing stipends

• Mortgage buydowns

• Moving services

• Furnishing allowances (like the carpet/drape budget my current client received)

While not all companies go this far, many are beginning to recognize the need to support housing transitions as part of supporting talent mobility.

Creative Workarounds: Renting While Keeping Your Home

For those unwilling to give up their current mortgage, one potential strategy is renting out their current home and becoming a renter in the new location. While this can help preserve a low-rate mortgage and build equity, it’s not without drawbacks:

Pros:

• Maintain a sub-3% mortgage

• Grow equity in a rising market

• Test a new job/location without a long-term commitment

Cons:

• Tax implications (loss of capital gains exemption)

• Rental income tax reporting

• Property management burdens

• HOA and local rental restrictions

• Emotional loss of connection to the home

Final Thoughts

In today's market, staying put often feels safer—but sometimes, the right opportunity is worth the move. Whether you're relocating to Colorado Springs or moving from it, I’m here to help you evaluate your options with a clear, informed plan. With the right team in place—on both the real estate and lending side—you don’t have to make these decisions alone. Want clarity? Reach out, I am here to help.

📲 Connect with Nicole:

• Instagram: @nicole_strom_realtor

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• Twitter: @nicolestrom3

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• Website: www.NicoleStromRealtor.com

• Phone: 719-922-0102