Mortgage Rates Delaying Buyers

Sixty-six percent of potential buyers said they are putting their homebuying plans on hold until mortgage rates fall.

According to a survey from U.S. News, 28% of these buyers are waiting until mortgage rates fall below 6%, while 30% are delaying until mortgage rates fall under 5.5%. However, 26% said they will wait until mortgage rates decrease to below 5%. Nearly two-thirds (62%) said they find staying updated on mortgage rates and news a challenging feat.

Nearly 80% of would-be buyers said they have thought about ways to get a lower mortgage rate, including a shorter loan term (37%), using an adjustable-rate mortgage (34%) and/or purchasing mortgage discount points. Seventy-three percent said they are going to meet with several competitive lenders to see what rates are available to them; 40% plan to visit three and 27% plan to visit two. Thirty-five percent of respondents said their biggest priority with a mortgage is having monthly payments that are affordable, 27% said they want to get the lowest rate possible and 21% want to save the most money over the loan’s existence.

Twenty percent of homebuyers said they are extremely stressed about the homebuying process this year, while an additional 66% reported having some or a little stress about it. First-time buyers were more likely to report being stressed. In the survey, 61% of respondents were first-time buyers and 77% said they regret not buying a home when mortgage rates were lower.

Of repeat buyers, 25% said they are not planning to sell their current property. For the 75% who do plan to list, 56% said they think they will regret giving up their current lower mortgage rate.

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