A family in Sacramento, California, is opting to stay in their small home due to financial considerations. Anna and Isaak Curry, along with their two children and two dogs, have outgrown their 1,067-square-foot house but are reluctant to move because of the low mortgage rate they secured during the pandemic.
The couple purchased their home in Rancho Cordova in 2019 when it was just them, their son Kylan, and a dog named Echo. They refinanced at a favorable 2.25% rate during the COVID-19 pandemic. Despite needing more space for their growing family, including a daughter and an additional dog, they are hesitant to give up this low rate.
Anna Curry explained the situation: “How can you let go of 2.25%? It’s like a treasure.” The family has made adjustments within their current home to accommodate everyone. Their daughter’s bedroom also serves as an office for both parents who work from home.
In 2023, Anna’s relatives from Ukraine temporarily moved in with them due to the ongoing conflict there but have since relocated. However, they may return in the future.
The lock-in effect—homeowners holding onto properties due to low mortgage rates—is impacting many across the U.S., including the Currys. Realtor.com Chief Economist Danielle Hale noted that while rates remain high, there might be signs of change as sellers become impatient.
Sacramento’s real estate market reflects these trends with rising prices and increased listings compared to previous years. The median list price rose nearly 37% since 2019.
The Currys plan to rent out their current home while renting a larger one closer to schools in El Dorado County. However, rental costs are also increasing; Sacramento ranks among the most expensive large metro areas for renting.
