53% of locked-in homeowners would move school districts if they could keep their mortgage rate

Many young families that scored sub-4% mortgage interest rates during the pandemic now find themselves outgrowing their starter homes – but unable to leave them behind.

Rocket Mortgage surveyed parents who have historically low mortgage rates and are relatively dissatisfied with their school district, and found a whopping 79% have already been influenced by the “lock-in effect.” The idea of giving up their current interest rate has made it much harder or at least somewhat harder for these families to move – even when doing so means securing better educational opportunities for their children.

Key takeaways:

• More than half (53%) of locked-in parents who aren’t very or extremely satisfied with the schools in their area say they would be likely or very likely to move to another school district if they could keep their current mortgage rate.
• Among respondents who had already seriously or somewhat considered moving to a better school district, nearly half (48%) would be willing to increase their monthly mortgage payment by $101 – $400 per month. But 15% would not accept any increase at all.
• More than half (54%) of respondents say it’s extremely stressful or very stressful when housing costs limit their child’s education options.
• The majority (63%) say they would move if they encountered safety concerns, even if it meant losing their historically low mortgage rate.

Weighing the value vs. cost of a better education

Many families would move if it meant giving their child a richer educational experience that a better school district provides. More than half (56%) of the respondents to the recent Rocket Mortgage survey say they have either seriously or somewhat considered moving to a better school district for their children, despite holding on to a sub-4% mortgage interest rate.

Most of these families, however, draw the line at how much they would be willing to pay. While nearly half (48%) of respondents would be willing to increase their mortgage payment by $101 – $400, 15% wouldn’t accept any increase. A similar group (14%) of respondents would tolerate an increase of only $1 – $100. Just 4% would be willing to accept an increase of more than $1,000 to their monthly payment.

Locked-in homeowners with school-aged kids are also split on how much of an increase to their mortgage rate they would accept in exchange for a better school district. The most popular responses – tied at 28% – were no increase at all and an increase of 0.51 to 1 percentage point. Only a measly 2% of respondents say they would accept a rate hike of more than 2 percentage points. With the average interest rate on 30-year fixed-rate mortgages currently above 6%, such an increase would likely be necessary for those with sub-4% mortgage rates.

When cost isn’t an issue, parents and caregivers are motivated to seek out a new home with access to better educational opportunities for their children. More than half (53%) of respondents say they would be very likely or likely to move to another school district if they could keep their current mortgage rate.

Most parents want their kids settled before middle school

Many respondents to the recent Rocket Mortgage survey say they would want to move to a new school district while their kids are still young. An ambitious 9% define that as before preschool. About 32% want to be settled before elementary school, and an additional 25% say they’d want to make the switch before their kids start middle school.

The preference to move before these milestones shows the majority (67%) of parents generally want their children settled in their school districts well before the academic and developmental demands of high school. Just 23% of respondents say they’re fine with moving and getting settled in a new school district right before high school.

Low payments are a perk, but safety is nonnegotiable

For the majority of locked-in parents and caregivers, safety concerns supersede a cheap mortgage payment. When asked what event might prompt them to move – even if it meant losing their historically low mortgage rate – 63% of respondents cited safety concerns. This response far outstripped the next-most popular response, which was academic concerns at 12%.

Families get creative to keep their low mortgage rate

While having a sub-4% mortgage rate in the current economy comes with significant savings, many agree that feeling trapped because of housing costs is a stressful experience. The majority (54%) of respondents say it is extremely or very stressful when housing costs limit their children’s education options.

At the same time, most homeowners with school-aged children and a low mortgage rate aren’t willing to take trade-offs between paying more for a house or more for school. When asked to choose between a more expensive mortgage or private tuition, 58% said neither option felt financially comfortable.

Most respondents are willing to get creative with alternative schooling options if it means keeping their low mortgage rate. For example, 34% would consider sending their children to private school, and 28% would try homeschooling. Only 10% say they wouldn’t consider alternative options. Curiously, less than 1% of respondents say they would send their kids to boarding school.

The bottom line

There’s no way to sugarcoat it: In the current economic climate, homeowners with low mortgage rates may have to choose between housing affordability and the best schools for their kids.

For those families bound by the lock-in effect, there are still options. Parents and caregivers can collaborate with teachers, administrators, and fellow families to advocate for meaningful improvements to their child’s school. Getting involved can not only create a more supportive learning environment, but also strengthen a family’s connection to the community at large.

When it comes to prioritizing a low mortgage rate or the ideal education for a child, there are pros and cons to each choice. Ultimately, every family must decide what’s best for their unique situation.

Methodology

In May 2026, Rocket Mortgage conducted an online survey of 1,011 American homeowners age 18 and older who:

• Are parents or guardians of a child or children age 17 or younger living at home
• Have a current mortgage rate below 4%
• Identify as moderately, slightly, or not at all satisfied with their zoned public schools

Not every respondent answered every question; all questions were multiple choice.

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