A recent survey by Realtor.com and research company Censuswide reveals that 78% of home shoppers planning to purchase within the next year think it's likely they will be priced out of the market if home prices and mortgage rates continue to rise, but the vast majority (88%) of respondents still hope to make a home purchase despite a lack of affordability.
Inflation was cited as the chief concern among 51% of buyers hoping to purchase within the next year, followed by 48% of buyers deterred by rising interest rates, and 46% who said rising home prices are their biggest obstacle. Among all survey respondents, just 9% said they were not second-guessing their plans to purchase a home during the next year, Realtor.com reports.
However, for respondents who cited financial reasons as the impediment to buying this year, should mortgage rates fall significantly, many would be eager to jump back into the market. A little more than a quarter of priced-out respondents would be willing to venture into the market at a mortgage rate of 6% or above while almost three-quarters would stay on the sidelines, waiting for a lower level. The most common mortgage rate comfort-level for respondents was in the 3.0%-3.25% range, less than half of today’s level, with 11% of respondents citing this as the level that would bring them back into the market. Roughly 10% of respondents said there would be no rate low enough to bring them back into the market.