5 Percent Mortgage Rates Aren't Scaring Buyers #realestate #investment #homeownership

Source:  Realtor Mag

Mortgage rates are inching higher, and most home buyers seem unfazed by it.  Only 6 percent of prospective home buyers recently surveyed said they would stop their home search if mortgage rates rose above 5 percent, according to a new survey released by the real estate brokerage Redfin of more than 4,000 consumers.

Making Sense of the Story

- Mortgage rates hovered below 4 percent at the end of 2017, but in January the average 30-year fixed-rate mortgage surpassed 4 percent.

- For the last five consecutive weeks, rates have been on the rise, with the 30-year mortgage rate averaging 4.32 percent in Freddie Mac's most recent survey.

- However, 27 percent of consumers who plan to buy a home in the coming year did say that a 5 percent mortgage rate would cause them to slow their plans to buy.

- A quarter of buyers said that an increase would have zero impact on their plans.

- Higher rates may cause some buyers to rush their timelines.  Twenty-one percent of potential buyers surveyed said that a rate bump to 5 percent would cause them to increase their urgency to buy.

- Another 21 percent said that such an increase would instead make them want to look in more affordable areas or to buy a smaller home.

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