The share of U.S. adults planning a home purchase within a year rose from 13% in the first half of 2022 to 15% in the third quarter, indicating that higher mortgage rates could actually be motivating some buyers to jump into the market now rather than facing more rate hikes down the road. After dropping to a low of 19% in the first quarter of 2022, the share of prospective buyers looking for new construction climbed to 21% and 27% in the second and third quarters, respectively, according to NAHB’s Housing Trends Report.
A driving force in demand for new-home construction is a scarcity of existing housing supply, which has posted stagnant gains over the past year compared to a 25% year-over-year jump in new homes for sale, NAHB reports.
The marginal increase suggests that the prospect of higher mortgage rates in the near term may be leading a small segment of consumers to consider the purchase of a home sooner rather than later.
This interest is nationwide: The share of prospective buyers looking to purchase a new home rose in all four regions.
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