Real Estate

Redfin: Rising interest rates not derailing buyer interest, yet

47% of those surveyed cited concern in rising rates

The latest survey from Redfin revealed a surge of concern over rising mortgage interest rates. Of those surveyed, 32% claimed they had no major concerns about selling, while 47% cited concern that rising rates would cause a drop in buyer demand, which has more than doubled the percentage from last quarter. 

Despite recent concerns about rising interest rates, 48% of respondents believe now is still a good time to sell, an increase from 45% in the second quarter. Even more surprising, there was a slight increase in respondents that believe now is a good time to buy, with 45% believing now is a good time to buy, up slightly from 44% in the second quarter 

"Of course home sellers are worried about interest rates, but the reality is that many buyers believe that rates will continue to go up," said Redfin Los Angeles real estate agent Eric Tan. "They know if they don't move now, they might be kicking themselves all over again in three months." 

Of those polled, 17% believe home prices will rise "a lot" in their area in the next 12 months, up from 15% in the second quarter. The number of respondents that believe home prices will rise in their area in the next 12 months remained unchanged from last quarter at 85%. 

"Results from our seller survey point to growing confidence in the US economy, and recognition that broad economic gains could erode sellers' advantages in the housing market as mortgage rates rise," explained Redfin economist Ellen Haberle.

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