Nearly half of all sellers in a recent survey are worried that rising mortgage rates will tank buyer demand, a doubling of concern since the first quarter.
Some 47 percent of sellers now are concerned that rising rates would cause a decrease in buyer demand, up from 23 percent in the second quarter, though 32 percent said they had no major concerns about selling.
“Of course home sellers are worried about interest rates, but the reality is that many buyers believe that rates will continue to go up,” said Los Angeles real estate agent Eric Tan. “They know if they don’t move now, they might be kicking themselves all over again in three months.”
Despite increasing concerns over interest rates, 48 percent of sellers believe now is still a good time to sell, up from 45 percent in the second quarter. Interestingly, belief that now is a good time to buy was up one percent from last quarter. Although slight, this increase in buying confidence is the first in more than a year.
However, only 17 percent of respondents believe that home prices will rise “a lot” in their area in the next 12 months, up from 15 percent in the second quarter; 85 percent of respondents believe that home prices will rise in their area in the next 12 months, unchanged from last quarter.
“Results from our seller survey point to growing confidence in the US economy, and recognition that broad economic gains could erode sellers’ advantages in the housing market as mortgage rates rise,” explained Redfin economist Ellen Haberle.
The survey, by Redfin, was based on responses from 1,448 homeowners across the U.S. who had used Redfin in the last three months. Data was collected from July 19 through 21.
Nearly half of all sellers in a recent survey are worried that rising mortgage rates will tank buyer demand, a doubling of concern since the first quarter.
Some 47 percent of sellers now are concerned that rising rates would cause a decrease in buyer demand, up from 23 percent in the second quarter, though 32 percent said they had no major concerns about selling.