In a recent survey conducted by John Burns Research and Consulting, more than 1,300 homeowners and renters with household incomes of $50,000 and above, 55% expressed the belief that now is a bad time to buy a home, while 22% think it is a good time to buy.
Also revealed was what 71% felt was the mortgage-rate tipping point for what they would not exceed when buying a home–5.5%. Considering that the rate has not been at that level since August 2022, it could help explain why home sales are nowhere near as high as in recent years past. About 62% of consumers surveyed believe a historically normal mortgage rate is below 5.5%.
The current average rate is about 6.4%. Historically, the 30-year fixed-rate averaged 7.75% from 1971 to 2023, reaching a high of over 18% in 1981, and a low of 2.65% in January 2021, at the height of the pandemic. Also not helping current sales, according to the survey, is that 63% of current homeowners think homes are overpriced, as do 83% of renters.
Many people who might have put their homes on the market and moved for various reasons are staying put if they have a favorable mortgage rate, not wishing to exchange something in the 5% or lower range for something a point or more higher, so that is keeping inventory low.
To see the survey report, go here.
