Redfin found that nearly half of potential homebuyers in a recent survey would be likely to speed up their activities if mortgage rates reached 3.5%, but very few would cancel their plans.
The average 30-year mortgage has arrived 3.22% this week, the highest point since May 2020, according to Freddie Mac. By the end of this year, rates should be 3.6%, said Daryl Fairweather, chief economist at Redfin, which would make it less expensive to buy a home.
“Over time, this will put the brakes on demand and put an end to the double digits Annual price growthFairweather said in a press release. But in the short term, this increase will ignite a fire under home buyers and lead to competitor January.”
Of the 1,092 survey respondents who plan to buy a home in the next 12 months, 47% are likely to act with greater urgency to enter the housing market if rates continue to rise. 29% plan to either look at a less expensive location or consider purchasing a smaller home.
Postponing their activities and waiting for a drop in mortgage rates is the measure for 14%, but 7% said they would not change their plans. Only 2% would abandon a home buying decision in this scenario.
The survey was conducted for Redfin by Lucid between December 10 and 13.
In a separate December poll from Fannie Mae, 66% of consumers said now is a bad time to buy a home, up 2 percentage points. from november. The share that described this as a good time to buy slipped 3 percentage points to a record low of 26%.
“Among homeowners, ‘time to buy’ sentiment has fallen 30 percentage points over the past year to its current level of 30%; for renters, it’s down from 37% to 21%,” Fannie Mae chief economist Doug Duncan told the press. . Release of the latest indicator of home buying confidence. “Although demand remains strong, it is clear that the majority of consumers have reservations about buying a home at current prices.”
More than half of the respondents, 56%, said they expect mortgage rates to rise over the next 12 months, while 30% think they will stay the same. Expected rates may drop by only 4%.
The Fannie Mae National Housing Survey was conducted from December 1 through December 17.
window.fbAsyncInit = function() { FB.init({
appId : '175861982917270',
xfbml : true, version : 'v2.9' }); };
(function(d, s, id){ var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) {return;} js = d.createElement(s); js.id = id; js.src = "https://connect.facebook.net/en_US/sdk.js"; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk')); .