Survey: Higher Rates Don’t Scare Buyers

Despite mortgage rates reaching a two-year high last week, home buyers say the increases aren’t scaring them away from their real estate search, according to a new Redfin survey. Only 2.6 percent of respondents say they have decided to postpone their search since rates rose above 4 percent.

Twenty-five percent of respondents say the rise in rates does not impact their homebuying decisions, and about 24 percent say they feel a greater sense of urgency to buy before rates go up further. However, 23 percent say the rate increases may prompt them to look in other areas or  buy a smaller home. About 26 percent of buyers say they might take more time with their search and see if rates go back down again.

Source: “Rising Mortgage Rates: Homebuyers Are More Resilient Than You Might Think,” Redfin Blog (Dec. 20, 2016)