Prospective buyers aren’t afraid of rising mortgage rates: Redfin

Prospective homebuyers aren’t being scared away by rising mortgage rates – even if they creep up over 5 percent for a 30-year mortgage – according to a new study from Redfin.

Of the more than 1,300 respondents surveyed by the Seattle-based real estate brokerage in May, only 5 percent said they’d call off their home search if rates – which recently climbed to 4.5 percent – hit the 5 percent mark. Conversely, 24 percent said such an increase would have no impact on their search.

“Homebuyers are well aware that higher mortgage rates means higher monthly payments, but mortgage rates remain very low, historically, and buyers will make compromises,” said Taylor Marr, senior economist at Redfin in a release. “Most of the pressure buyers are feeling is from competition for a very limited number of homes for sale. The fact that such a small share of buyers will scrap their plans to buy a home if rates surpass 5 percent reflects their determination to be a part of the housing market.”

The data is pretty consistent with similar surveys, that Redfin conducted in both May and November of 2017.

The survey reached out to 4,264 people from the general population who had indicated they had either bought or sold a home sometime in the past year, tried to buy or sell a home within the past year or plan to do so this year, according to Redfin.

Mortgage rates have stabilized in recent weeks, according to the latest data released by Freddie Mac, after rising steadily from 4 percent to slightly more than 4.5 percent over the past year.

Take control of your schedule and achieve MORE!

Tom Ferry explains why success starts with making the most of your time… READ MORE

Email Patrick Kearns

Prospective buyers aren’t afraid of rising mortgage rates: Redfin curated from Inman

Comments

Vacation rental company Vacasa buys Sterling Resorts

Vacation rental management tech startup Vacasa isn’t slowing down its ambitions to conquer the market: this week, it announced that it has purchased Sterling Resorts, a vacation management company on Florida’s Gulf Coast. Sterling has changed hands before: it was bought by Pacifica Companies in 2015 and currently manages 450 homes. Now it will become a part of Vacasa’s effort to expand its presence in vacation destinations such as northern Florida, where Sterling is based. At the time of this latest purchase, Sterling’s home inventory was down from 585 properties in 2015. Vacasa has raised more than $200 million since its launch ten years ago. Founder Eric Breon said he was motivated to start the company after struggling to find a satisfactory management solution for a cabin belonging to his wife’s family on the Washington coast. Now Vacasa seeks to provide rental property owners with “a seamless experience…through innovative technology and local staff,” that give them

In An Era Of WeWork, Co-Working Space NeueHouse Sits Above The Fray

NeueHouse CEO Josh Wyatt Seuss Moments In today’s cluttered co-working landscape, it can be hard for companies to makes themselves heard over the din. Elevated co-working space NeueHouse wants to create an unparalleled experience for creatives through elevated programming and outstanding design. NeueHouse describes itself as “ a private cultural and collaborative space for prominent creatives, artists and entrepreneurs,” with current locations in Los Angeles and New York. In November, following an announcement of $30 million in funding , the company announced Josh Wyatt as its new CEO. Wyatt is a veteran of the hospitality industry, having co-founded Generator in 2007, a chain of culture-focused hostels targeted at millennials, before moving on to Equinox to head the fitness brand’s hotel developments in New York City. Forbes interviewed Wyatt to talk about creativity, design, the gun threat incident at NeueHouse New York, and why he isn't phased by his "800 p

Could Ken Griffin's Penthouse Purchase Cost NYC Real Estate Buyers Millions?

'The Billionaire's Bunker' at 220 Central Park South is pictured on January 24, 2019, in New York - Hedge fund billionaire Ken Griffin has completed the purchase of a four-story penthouse in the building for $238 millionm- the most ever paid for a home in the US. The building is a residential skyscraper that is currently under construction. (Photo credit: TIMOTHY A. CLARY/AFP/Getty Images) Getty A 2014 bill that aims to impose an additional tax on part-time New York residents—dubbed the “pied-a-terre tax”—has risen from the dead, largely in thanks to the recent record-breaking Central Park penthouse purchase by billionaire Ken Griffin. Griffin, worth an estimated $11.7 billion and No. 45 on the Forbes 400 , reportedly bought the $238 million-dollar apartment “as a place to stay when he’s in town,” according to his representatives. The purchase drew widespread attention to the financial losses that part-time and foreign property owners can cause the city. Bec

Maureen Mengel Blog

Search This Blog