|February 12, 2018|
|Redfin Survey: Just 6% of Homebuyers Would Cancel Plans to Buy if Mortgage Rates Surpassed 5%|
After hovering below 4 percent at the end of 2017, the average 30-year fixed mortgage rate surpassed 4 percent in January and has been steadily rising, reaching 4.32 percent at the time of this report's publication. Mortgage rates are expected to continue to rise in the coming year.
Twenty-seven percent of respondents who plan to buy a home in the coming year said that a 5 percent mortgage rate would cause them to slow their plans to buy, down two points from May. A quarter said such a hike would have no impact on their plans, consistent with the May survey findings. Among prospective buyers responding to the late-2017 survey, 21 percent said a rate bump to 5 percent would cause them to increase their urgency to buy, while another 21 percent said they would instead look in more affordable areas or buy a smaller home.
The second in a series of three reports on a November/December survey of more than 4,000 people who bought or sold a home last year, attempted to do so, or planned to do so soon revealed the following key findings related to the housing market and the economy:
The tax reform debate may have fueled anxiety as high taxes were the most common economic concern, cited by 38% of respondents.
By contrast, affordable housing was the most frequently cited economic concern among respondents in other parts of the country including
77% of respondents said they expect home prices in their area to rise in the next year.
"Tight credit, lack of inventory and high demand are the major factors that tell us there's no housing bubble, despite rapid price increases," said Redfin chief economist
To read the full report, complete with data, charts and a full methodology, please visit: https://www.redfin.com/blog/2018/02/if-mortgage-rates-surpassed-5.html.
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Redfin Journalist Services: Rachel Musiker, 206-588-6863, firstname.lastname@example.org