The Golden Handcuffs of Austin Real Estate

If you bought or refinanced between 2020 and 2022, there’s a good chance you’re wearing what we lovingly call the golden handcuffs. That sub-3% interest rate feels incredible on paper, but it also makes the idea of moving feel borderline irresponsible. Those historically low rates are what sent home prices soaring. Cheap money allowed buyers to afford more, which drove values up. Appraisals followed, and with them came higher property taxes and insurance premiums. Suddenly, people weren’t just paying for a house. They were paying for the value of a 2022 house. The only reason the numbers still work is because the rate is so low.

That’s the trap. Even when a home no longer fits your life, your family, or your sanity, the math says “stay put.”

What we’re starting to see, though, is a subtle shift. In less desirable neighborhoods, prices have corrected significantly. In the most sought-after areas, values have held stronger, but even there, dated or poorly positioned homes are sometimes selling under market. These moments create windows, not chaos, just opportunity.

Some homeowners are beginning to move again, especially those who can trade into a home that simply works better for their family. More space. Better schools. A better layout. They don’t love giving up a 2.75% rate, but they also don’t love living in a house that no longer fits their life. So they run the numbers, take a breath, and some of them jump.

There’s also a quiet bet happening. If rates ever drift back into the low 5s or even the 4s, a lot of pent-up demand will flood back into the market. Many buyers are waiting for just one variable to change. Knowing that, some are saying, “This house works for us now. We can make the numbers work. If rates drop later, we’ll refinance.”

The golden handcuffs aren’t coming off all at once, but in parts of the market, they’re loosening. There will be more in-town moves, more calculated trades, and more families deciding that a better home is worth a higher rate, at least for now. And plenty of people will stay put and ride that 2.8% rate into retirement, which honestly, I respect.

This isn’t about forcing movement. It’s about understanding the moment. Because sometimes, the most valuable thing isn’t your interest rate. It’s having a home that actually works for your life.