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 to the survey 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.
Why are home buyers feeling resilient in the face of increasing mortgage rates? According to Redfin’s blog: “While there’s no definitive answer, often home buyers are searching for a new home because of a major life event, such as a birth or a marriage or a job relocation, which can’t easily be timed to the market — but which still motivates a purchase along its own timeline.”