Rising mortgage rates could actually spur NJ homebuyers
A new survey from Realtor.com finds 1 in 3 prospective home buyers are concerned about rising mortgage rates. Almost 4 in 10 believe higher rates will drive up the down payment for a home purchase.
But New Jersey Realtors President Chris Schlueter says some Jersey buyers are making their move now. He says higher rates will spur the so-called "fence sitters."
"Actually, what we have seen is that some buyers coming off the fence that were sitting and waiting and now are getting nervous that the rates may go beyond where they can afford a home. Many of them are coming off the fence and buying homes."
Schlueter also says, "I believe that certain people get affected by that because their affordability may change a little bit, so they may have to look for a less-price home than what they were looking for."
The Realtor.com survey shows better than 4 in 10 say they may have to seek a less expensive home; 38 percent believe they will need a larger down payment; and 35 percent believe it will be necessary to find a smaller home.
Respondents were asked about their level of concern about interest rates: 7 percent were very concerned; 27 percent said they were concerned; 19 percent were neutral; 22 percent percent said they feel good; and 24 percent said they feel very good.
The survey polled 1,214 buyers who said they are planning a home purchase sometime in the next year.