graph in a paper with wooden houses
adrian neil brockwell graph in a paper with wooden houses

Most likely home buyers are aware that mortgage rates are expected to increase, and because of those rising rates, nearly half of home shoppers said they would delay purchasing a home, consider buying a smaller home, or both, according to a recent Zillow survey.

Among home buyers who said an rising mortgage rates would make them reconsider their home buying strategy (47%), 17% said they would search for a smaller home in a more affordable neighborhood, 12% said they would consider delaying their purchase, and 19% said they would consider both strategies.

Still though, rising interest rates are not among the top concerns of home buyers. Price and availability of homes within a given budget are the leading concerns among respondents currently in the market or who expect to be in the next year. More than a quarter (29%) of respondents cited “finding an affordable home” (which we broadly interpret as concerns about inventory and price) as the top factor that may impact their ability to buy a home within their preferred timeline. The next most commonly cited concerns were saving for a down payment (19%) and qualifying for a loan/concerns over credit scores (18%). Rising interest rates ranked fourth among the six options given (14%).

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