Ascending mortgage rates are starting to weigh on homebuyers nearly as much as low inventory, according to Redfin’s most recent Real-Time Homebuyer Survey.
For its report, Redfin surveyed 1,772 active homebuyers across the 22 markets it covers. Respondents hailed from all over the country. Out of those polled, 56% said rising rates have impacted their ability to buy a home “somewhat,” while an additional 7% said rates are impacting them “a lot.” When asked how rates have affected their home search, 33% said they’re speeding up their search before rates get too high, 20% said they’re slowing their search, and 1% have stopped looking altogether.
For its report, Redfin surveyed 1,772 active homebuyers across the 22 markets it covers. Respondents hailed from all over the country. Out of those polled, 56% said rising rates have impacted their ability to buy a home “somewhat,” while an additional 7% said rates are impacting them “a lot.” When asked how rates have affected their home search, 33% said they’re speeding up their search before rates get too high, 20% said they’re slowing their search, and 1% have stopped looking altogether.
In addition, more homebuyers pointed to rising mortgage rates as one of their major concerns with buying a home right now, with 53% giving that response. However, inventory shortage was still the chief concern, earning 58% of responses. At the same time, when asked about their motivation for buying a home this year, only 37% of buyers cited low mortgage rates, down from 56% last quarter. 35% answered “life event,” 33% said “rising costs,” and 25% said they are “tired of waiting.”
On the positive side, buyers seem to believe the market is shifting back toward a balance. The share of buyers who believe now is a good time to sell in their neighborhood fell to 63% from 66% in the last survey, marking the first drop in three quarters. Still, though, only 24% of buyers said now is a good time to buy, a drop from 32% in the last survey.
Finally, home price expectations were a little more muted than they have been in past surveys. 13% of respondents said they expect home prices in their area to “rise a lot” over the next year, down from 23% in the prior survey. Just more than half (51%) expect prices to “rise a little” (down from 57%).
On the positive side, buyers seem to believe the market is shifting back toward a balance. The share of buyers who believe now is a good time to sell in their neighborhood fell to 63% from 66% in the last survey, marking the first drop in three quarters. Still, though, only 24% of buyers said now is a good time to buy, a drop from 32% in the last survey.
Finally, home price expectations were a little more muted than they have been in past surveys. 13% of respondents said they expect home prices in their area to “rise a lot” over the next year, down from 23% in the prior survey. Just more than half (51%) expect prices to “rise a little” (down from 57%).
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