Nearly two-thirds of consumers are "encouraged" that
The survey found that 64% of the 1,818 respondents to the survey taken July 22 and 23 believe rates will be trending down in the near future, with 21% stating they were very encouraged this will be happening, and another 43% claiming to be somewhat encouraged.
In recent weeks, mortgage rates have dropped. The Mortgage Bankers Association's Weekly Application Survey released today put the conforming 30-year fixed at 6.54%, down 1 basis point from the previous week and from
That is in line with Lender Price data posted on the National Mortgage News website, which went to 6.547% on the morning of Aug. 14
Last week's Freddie Mac Primary Mortgage Market Survey
These are still higher than what Mphasis Digital Risk pegged as the "magic number" to bring those consumers into the home purchase market.
While 20% of respondents defined that mortgage rate at 6%, the largest share, 42% said 5% was their magic number and 27% was even lower, at 4%. Rates have not been that low since March of 2022, although much of the prior decade before the pandemic they were in the 3% through 5% range, Freddie Mac data showed.
The remaining 11% of respondents said they were not sure about what mortgage rate would get them to act.
Inflation was the leading factor consumers cited as causing higher mortgage rates, by 30% of respondents, followed by 23% blaming Pres. Biden, while 13% named the Federal Reserve.
Positive
"Many prospective buyers started questioning the American dream of home ownership as inflation brought mortgage rates to a cyclical peak of 8% in October 2023, but now rates are down more than 1.5% from this peak," said Jeff Taylor, managing director of Mphasis Digital Risk, in a press release. "We're now getting closer to homebuyers' comfort zone of low-6%, high-5% rates, and September's anticipated Fed cuts should help buyer sentiment."
That makes it more likely the mortgage industry could meet 2025 forecasts
Another reason why 2025 might be the target date for increased activity is wariness over the upcoming Presidential election. A substantial minority, 39% of those surveyed, responded yes when asked if the uncertainty around the election is causing them to postpone a decision on buying, selling or remodeling a home.
The results
The belief that a different administration would improve the housing market got an affirmative response from 56% of consumers.
Just 29% of those surveyed plan to buy a home in the next six months, while 23% who were looking said they were discouraged by the sellers' market and rising home prices after "an unproductive search" for two or more years.
Backing other recent data, the survey found homeowner's insurance availability is a big influence on the decision to move for potential buyers.
Slightly under half, 47%, believe
When it comes to where they currently live, 25% are considering moving due to extreme weather in their area, while 26% said they knew of someone who was forced to move because of home insurance costs.
Just under eight in 10 said they were concerned about extreme weather, with a subset of 40% stating they are more worried now than five years ago.
As for the
