First-Time Buyers Returning to the Market

With interest rates slowly rising, a new report says that many first-time homebuyers aren’t taking any chances, and are looking to buy a home as soon as possible.

According to the Housing Pulse survey from Inside Mortgage Finance and Campbell Surveys, the percentage of first-time buyers grew from 34.4 percent in October to 37.2 percent in November, as they looked to take advantage of solid buying conditions.

“The recent surge in interest rates has made potential homebuyers nervous,” explained Thomas Popik, director of the survey. “If rates go up much more, then a good percentage of them will no longer qualify for the properties they want.”

The report added that existing homeowners have been less affected by rising rates because they generally need to sell their current home first before they can buy a new home of their own – not an easy task in the current real estate market. Mortgages rates have consistently risen since hitting their record lows earlier this year.