Real Estate

Homebuyers’ mortgage rate tipping point is artificially low

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Homes in Centreville, Maryland, US, on Tuesday, April 4, 2023. 

Nathan Howard | Bloomberg | Getty Images

Today’s homebuyers are exceptionally sensitive to mortgage rates with house prices so high — and they’ve found their tipping point.

After years of government intervention following the great recession and the first years of the Covid-19 pandemic that kept mortgage rates artificially low, today’s buyers have a skewed view of what “normal” mortgage rates are.

The majority of potential homebuyers, 71%, say they will not accept a 30-year fixed mortgage rate over 5.5%, according to a survey done in March by John Burns Research and Consulting. The current rate, however, is around 6.4%.

In…



Source cnbc.com

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