Buyer Urgency on the Rise

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Not only are more Americans saying that now is a good time to buy; they’re taking steps to do it. Fearing that home prices and mortgage rates are both set to rise, 73 percent of Americans are calling today’s market a “great time” to purchase a home, and, in conjunction with 44 percent that expect their financial situation to improve, that likely means more buyers “jumping off the sidelines,” according to the National Association of Realtors (NAR)[1]. Of course, we know that part of a realtor’s job is to be optimistic, but with 40 percent saying mortgage rates will rise, a third of Americans predicting rising home sales prices, and 48 percent forecasting that their rents are about to climb, it seems likely that these numbers will potentially push some able buyers into the home-buying arena.

Vice president of Fannie Mae, Doug Duncan, is also feeling optimistic about the market, predicting that homeownership will rapidly become “a more compelling housing choice” in the next few months[2]. 39.3 percent of mortgage professionals surveyed in a recent Mortgage Trend Survey by said that they believe that in the next three months mortgage rates will remain unchanged, while only 7.1 percent said that rates would “rise significantly.” 39.3 percent also indicated that they believed rates would “rise slightly,” however.

Duncan cites consumer expectation of higher mortgage rates as the main impetus for this change, but do you think he might have inside knowledge about mortgage rates as well?