As interest rates continue to remain low, a near bottom-record for the housing market, homeowners with “high-rate” mortgages are nearly twice as likely to say they plan to sell their home than those with a lower rate, according to a quarterly Zillow survey.
The survey shows that nearly one in five (17.7%) of those paying a mortgage rate over 5% responded that they planned to sell their home in the coming 12 months. On the flip side, only 8.7% of those paying a rate below 5% said the same. That is a massive 10-point difference between the two groups. In view of this, it appears that a mortgage rate in any given range has a significant effect on ultimate decision to sell a home. In the current market landscape, paying a higher rate influences many homeowners to make the move to search for better options and new opportunities.
Key points in summary:
• Homeowners with a mortgage rate above 5% are nearly twice as likely to say they plan to sell their home compared to those with lower rate mortgages
• 17.7% of those paying a mortgage rate over 5% say they plan to sell, versus 8.7% of those with a lower rate
• Mortgage rate in any given range has a significant effect on decision to sell home
• Higher rate influences many homeowners to search for better options and opportunities
You can read this full article at: https://www.housingwire.com/articles/if-mortgage-rates-fall-to-5-the-housing-market-could-get-interesting/(subscription required)
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