Many Sellers Looking to Buy a New Home Feel Trapped by Low Mortgage RateBy Claudia Larsen
Of homeowners looking to sell within the next 12 months, 86% are planning to buy a new home, but 82% of these seller-buyers feel “locked in” by their currently low mortgage rate, according to a new survey from Realtor.com.
Realtor.com and HarrisX’s new survey asked sellers their opinions and predictions about the near-future market and how their sales may proceed. The survey found that 56% of the seller-buyers mentioned said they are waiting for rates to come down, while 25% need to sell soon for personal reasons. Key highlights:
“One positive aspect that came out of the pandemic was historically low mortgage rates – and many people took advantage of this opportunity to buy their first home, upgrade to a more expensive home or refinance the home they were in,” said Realtor.com® Chief Economist Danielle Hale. “Unfortunately, this comes with a bit of a catch-22, as homeowners who locked in a 30-year fixed rate in the 2-3% range don’t necessarily want to give that up in exchange for a rate in the 6-7% range.” Hannah Jones, an economic data analyst for Realtor.com®, added that ““Given the changing housing market, it’s important for buyers and sellers alike to have realistic expectations heading into a home sale. By understanding the local market, sellers can make sure that they’re pricing their home well to help ensure a quick sale and avoid a home that lingers on the market.” Claudia Larsen is an associate editor for RISMedia. |
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