Are Higher Mortgage Rates Scaring Off First-Time Home-buyers?
Couple Viewing Potential New Home
First-time homebuyers are shying away from their plans to purchase this spring, according to a recently released report by realtor.com, due to the surge in mortgage rates in the last two months of 2016. Though rates have deflated since the end of the year, they remain hovering above 4 percent—high enough to scare off first-timers this spring, now down to 44 percent from 55 percent in October.
The rise in rates is not stifling demand overall, though, according to realtor.com’s report—in fact, repeat homebuyer activity has continued, as buyers, uncertain about the future, take advantage of still-low rates. Consumers recently surveyed by Fannie Mae believe now is a good time to buy a home, but also believe mortgage rates will rise in the year ahead.
https://rismedia.com/2017/01/22/higher-mortgage-rates-scaring-first-time-homebuyers/