First-time homebuyer shares of home purchases increased from 34.4 percent in October up to 37.2 percent in November, as mortgage rates spiked from record lows in early November.
"The recent surge in interest rates has made potential homebuyers nervous," Thomas Popik, the director of the HousingPulse survey, said. "If rates go up much more, then a good percentage of them will no longer qualify for the properties they want. As a result, they’re making bids on homes and quickly closing before their rate locks expire."
A real estate agent in Oregon stated in the release increasing interest rates have aided in recent first-time home buying, while another agent in Virginia suggests homebuyers are acting now because they don't think interest rates will be lower than they are now in the near future.
The survey utilizes more than 3,000 real estate agents in the US each month, supplying new information on home sales and mortgage usage patterns.
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