In the off-season of 2001, Lue signed with the Washington Wizards, where he got considerably more playing time and subsequently became a better point guard. He played with the Orlando Magic in 2003–04 and had a lot of minutes alongside Tracy McGrady, but the team had the worst record in the NBA that season: 21–61. After the season concluded, Lue, McGrady, Juwan Howard, and Reece Gaines were traded to the Houston Rockets for Steve Francis, Cuttino Mobley and Kelvin Cato. In Houston, Lue saw a notable decrease in playing time due to the overabundance of point guards on the Rockets' roster, and was subsequently traded mid-season to the Atlanta Hawks for Jon Barry. Lue starred in Atlanta, although again his team had the worst record in the NBA and their worst record in franchise history: 13–69.