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Threat of higher mortgage rates likely to boost home purchase activity

admin by admin
January 10, 2022
in Uncategorized
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Almost half of potential home purchasers in a recent survey would likely accelerate their activities if mortgage rates reach 3.5%, but a scant few would cancel their plans, Redfin found.

The average for the 30-year fixed rate mortgage reached 3.22% this week, its highest point since May 2020, according to Freddie Mac. By the end of this year, rates should reach 3.6%, which will make buying a home less affordable, Redfin Chief Economist Daryl Fairweather said.

“Over time, that will put the brakes on demand and put an end to double digit annual price growth,” Fairweather said in a press release. “But in the short term, this increase will light a fire under homebuyers and make for an extremely competitive January.”

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