A
recent Harris Poll on behalf of Trulia showed that of all the concerns that
potential home buyers have, a mortgage rate is third on the list.
Their biggest concern is the ability to just get a mortgage at all (regardless
of rate), the next biggest concern is the ability to find a home that they like
(this is certainly reflected in the very low inventory numbers) and then
rounding out the top three is the interest rate.
While no one wants a monthly mortgage payment that is higher than what they
were quoted a month ago, the fluctuations of rates have meant only small
differences in their mortgage payments.
Forty-two percent said they expect mortgage rates to increase over the next six
months, while 20 percent think rates will stay the same. Of their biggest
worry, 26 percent named ability to qualify for a home loan compared with 24
percent who pointed to rising rates. Millennials, ages 18-34, are even more
concerned about their access to credit than about their rate. Thirty-six
percent of millennials polled said access was their primary concern versus 26
percent indicating rising rates.
Nearly two-thirds of the consumers polled said the maximum price they would pay
for their first or next home was $250,000. With 20 percent down, the rate
increase could mean some buyers would qualify for less on a mortgage, but it
would not turn those buyers away.
