70% of real estate sales professionals report an increase in homebuyers due to: Mortgage interest rates are gradually decreasing According to a recent study by Assurance IQ, an insurance agency owned by Prudential, that will happen in 2023.
Interest rates have been rising for much of this year, breaking through the 7% barrier. Week of August 17th and come closest Average on October 26th is 8%, according to Freddie Mac.but Latest mortgage market research The average for a 30-year fixed-rate loan has dropped about 50 basis points since then, to 7.39%, according to the study.
Cutting interest rates will help stimulate demand, but some say cutting rates by another percentage point won’t alleviate supply problems.
High mortgage interest rates hit new home sales in October, with sales down 5.6% compared to September. Census Bureau data. However, compared to the same period last year, sales increased he 17.7%.
Doug Duncan, Fannie Mae’s chief economist, said in a statement: “While we expect new home sales to slow further this year, we don’t expect the decline to be much larger given the recent decline in mortgage rates.” I haven’t.” Go to the new home sales report. “We believe the continued shortage of existing homes available for sale will continue to support demand for new homes.”
Of the top five factors influencing home buying decisions, price and affordability topped the list, cited by 63% of real estate agents responding, followed by financing and mortgage options at 56%. Location and neighborhood came in third at 54%. 53% say their home has family-friendly features. and emotional appeals, 52%.
But even as interest rates rise, the market remains competitive. More than 6 in 10 real estate agent respondents (62%) said their clients need to make four or more offers before they commit to a property. For first-time buyers, the percentage is 68%.
Additionally, 57.6% of offers made this year were above asking price, survey participants said.
When asked about the average age of first-time buyers, 58% said they were between 25 and 34 years old, and nearly a third said they were between 35 and 44 years old. These age groups are primarily defined as Millennials.Previous Redfin research has shown that some of this generation Lose interest in home ownership.
“Entry-level supply remains particularly limited even as millennials continue to age into their prime homebuying years,” said Ksenia Potapov, financial economist at First American, regarding the new home sales data. I’m there,” he commented. “This month, 15% of new home sales were under $300,000, up from 13% a year ago.”
Another study recently published by Maxwell found that one-fifth of buyers I’m a single womanboth repeat visitors and first-time participants.
The 417 real estate brokers and agents surveyed in August for Assurance IQ have their own complaints about their customers.
At the top of the list are buyers with high expectations but a low budget, then invest your time in non-committal buyers. Unresponsive client. Clients who are late for appointments or forget their appointments altogether. and sellers who put their properties on the market at unrealistic prices.