Homebuyers Locking In Affordability

A recent LendingTree survey of 600 people looking to buy homes within the next 12 months shows that 64 percent of respondents anticipate higher mortgages rates and 68 percent predict prices will rise during that time. As a result, 57 percent of those polled plan to make down payments of 15 percent or more, and 45 percent plan to obtain 30-year fixed-rate mortgages. “Increasing home prices are providing would-be sellers with the confidence needed to take action, while rising interest rates are placing a sense of urgency on potential home buyers,” says LendingTree.com founder and CEO Doug Lebda. “Together this creates a unique window of opportunity for buyers and sellers to take advantage of the market while home prices and rates are still reasonably affordable.” The survey also reveals that 66 percent of buyers believe shopping around for a mortgage could lower their interest rate by 25 to 75 basis points, and nearly half of respondents would put those savings toward reducing their debt. | Read More