A new survey by mortgage lender Neighbors Bank was recently released and the numbers are incredibly revealing about the current state of home-buying as mortgage rates continue to remain at elevated levels. Here are some of the most compelling findings:
Buyers are overestimating how high rates are.
Neighbors Bank surveyed 1,000 prospective home buyers and only 35% correctly identified the current rate range for 30-year mortgages. Also interesting: 45% thought rates were higher than they actually are. What does this mean? As real estate professionals, it’s our job to set expectations. I’ve said it before but I think buyers have embraced the “new normal” of mortgage rates, and many who are serious about moving are slowly returning to the market.
Higher mortgages are delaying the home search.
According to the survey, 72% of prospective buyers put their home search on hold because of higher interest rates, with many saying they wanted rates to drop to around 5% before they’d resume their searches. To those who are waiting to buy, I have two pieces of advice. First, remember to date the rate, marry the home. Yes, rates are higher but there are still plenty of ways to navigate this landscape, including sellers offering a rate buy-down. Secondly, if you see a home you love, it may be gone by the time rates are where you want them to be. You could either be sitting in your new home, enjoying it completely or you could be passing by the home in your car, wishing it was yours!
There are some regrets.
A full 41% of survey respondents indicated they “regret” not buying a home before rates or home prices increased further. It’s true, rates could continue to climb, or they may fall, as we’re now in a lower rates range than we saw at the 2023 rates peak. Sure, you may regret not buying now because rates could potentially go higher but when they fall lower, it might be even more challenging to find a home because so many buyers will be searching, too.
After thirty years in real estate, I’ve definitely seen it all! Low rates, high rates, lower prices, higher prices … The truth is, when you’re ready, find an experienced agent who can navigate the current marketplace with you, a professional who knows the local market inside and out, and they’ll be able to help you overcome any challenges by using their knowledge and skill.
No matter where the market goes, I always like to remain positive, because if we can figure out how to get you that home or how to sell the one you’re currently in … we will!
Get in touch to schedule a complimentary real estate consultation today!
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Andrew Manning • REALTOR® • Berkshire Hathaway HomeServices California Properties • DRE: 00941825 • 818-380-2147 • andrew@andrewmanning.com