Home Buyers Cast Wary Eye on Rising Rates

A newly released Trulia study found that rising mortgage rates are the most pressing concern for prospective home buyers — more so than rising prices or the lack of available choices. At the same time, the research suggested that interest rates are not likely to be a deterrent to home buyers just yet despite having jumped in recent weeks to 4.68 percent — the highest rate in two years. Prospective homeowners should not be surprised about the climbing rates, according to Trulia chief economist Jed Kolko. Economists have been forecasting that rates would increase with the economy improving and with the Federal Reserve likely easing up on its bond buying. For its results, Trulia polled nearly 2,000 people over three days late last month just after rates started to spike upward. Some 41 percent of respondents said their biggest fear was that mortgage interest would rise before they were able to purchase a house versus 37 percent who were concerned about prices going up and 36 percent who worried that they would not be able to find a residence they liked. | Read More