Back in the late 1970s, the term golden handcuffs was popularized as a way to explain why ambitious professionals were choosing to stay put rather than explore other employment options. The reason being, of course, that their employers were spoiling them with generous above-market compensation—including stock options—and benefits.
Fast-forward to 2023, and the term golden handcuffs can also be used to explain why many homeowners who'd like to move are instead choosing to stay put. See, if these homeowners did choose to sell their home and buy something new, they'd likely be giving up their 2% to 3% mortgage rate and taking on something in the 6% to 7% ballpark. That potential mortgage rate payment shock is just too pricey for many would-be move-up buyers to stomach.
