Redfin: New homebuyers don't bite on low rates
Posted on Monday, November 24, 2014 at 8:19:49 AM
At the moment, residential financing rates are near a low point for 2014. On the surface, it may seem like now is the perfect time for new homebuyers to dive into the market, but a recent report from Redfin found that the low rates aren't driving up sales like some would expect.
In fact, the number of new buyers stayed relatively even in October, Redfin noted. What did increase was the amount of signed offers, a signal that buyers already interested in the market took the plunge - while those unsure stayed on the sidelines.
"Clients who had been casually house hunting amped up their searches and got under contract to lock in the low rates," said Tuniscia Okeke, a Baltimore-based Redfin agent. "These are opportunistic buyers who don't necessarily need to move, but have been waiting for the right deal to come along."
According to Freddie Mac, the 30-year fixed-rate mortgage dropped below 4 percent for the week ending Nov. 20 to 3.99 percent. The 15-year FRM averaged only 3.17 percent, down from the previous seven-day period's 3.20 percent.
Overall, the low rates are great for people already in the market, but they haven't done much to encourage other people to move just yet.