A recent CNBC Housing Market Survey reveals that many prospective homebuyers are anticipating a continued decline in mortgage rates, leading them to postpone their purchasing decisions. Over the past few months, mortgage rates have gradually decreased, currently resting at approximately 6.17% for the widely utilized 30-year fixed loan, as reported by Mortgage News Daily. Nearly 75% of real estate agents polled in the survey indicated that their buyers believe rates will decrease further, creating a sense of hesitation among them to act now.
The survey, which was conducted between September 22 and September 30 with 54 randomly selected real estate agents from across the United States, highlighted some key challenges in the current housing market. Many agents feel that current conditions favor buyers over sellers, yet affordability remains the primary factor delaying purchases. Despite the prevailing optimism about falling mortgage rates, agents identified these rates as the leading concern for buyers, followed by economic uncertainty and overall affordability.
The survey also revealed a disconnect between perceptions and reality in the housing market. While there is anticipation of falling rates, 44% of agents noted that prices in their areas are decreasing, and only 20% reported rising prices. This has led to a standoff between buyers and sellers; many sellers are pricing their homes for a seller’s market, while buyers are reluctant to buy now, waiting instead for potentially lower rates and prices.
In response to the current market pressures, buyers are turning to interest rate buydowns or adjustable-rate mortgages to navigate the challenges of affordability. Additionally, about 40% of respondents reported that buyers are relying on financial support from family and friends to afford homes, and many are compromising on size, location, or features of homes to lower their costs.
Looking ahead, most agents remain hopeful about future home sales, with a majority expecting them to either improve slightly or remain stable in the upcoming quarter. However, the outlook varies significantly by region, with pandemic-fueled hot markets experiencing the most substantial declines while more affordable areas see gains.
Sellers, on the other hand, are increasingly worried about the time it will take to secure a buyer. Many are concerned about underpricing their homes in the current market. The survey indicated that 89% of agents had at least one seller reduce their asking price, with nearly a third reporting that more than half of their sellers made such adjustments. Additionally, around 40% of agents noted that they had sellers delist their properties, hoping to relist at a better price later.
Overall, while the landscape presents challenges for both buyers and sellers, there remains cautious optimism as the market continues to evolve. As buyers and sellers adjust their expectations and strategies, the hope is that this transitional phase can lead to more favorable conditions in the near future.