WASHINGTON– Mortgage rates may have declined to their lowest level in a year, with the 30-year fixed-rate average now at 6.17%, but a new survey has found nearly three-quarters of real estate agents and most of their buyers think rates will come down further.
The findings were uncovered in the latest CNBC Housing Market Survey, which is a national inquiry of real estate agents selected randomly across the United States. Responses were collected between Sept. 22 and Sept. 30. This quarter, 54 agents shared what they’re seeing in their market, MSNBC said.
“Most agents said they consider the current conditions to favor buyers over sellers, but they still listed affordability as the No. 1 reason why buyers are delaying their purchases,” MSNBC reported. “Despite optimism that mortgage rates will continue to fall, agents said rates are still buyers’ top concern. That was followed by uncertainty in the economy and then just overall affordability.”
‘Divorced from Reality’
“That sentiment appears at least somewhat divorced from reality, however: 44% of agents reported prices are decreasing in their areas, and just 20% said they are rising,” the report added.
“Sellers are still pricing for a seller’s market, and buyers are willing to wait for prices and rates to drop. It is a bit of a standoff, and folks are only moving if they absolutely must,” said Katie Kosnar, an agent in North Carolina serving Raleigh and Durham, told MSNBC. “Right-sizing used to be a driving factor, but most sellers I’ve encountered will be paying a higher mortgage for a smaller house and just aren’t willing to make that move.”
Borrowing From Family
Roughly 40% of survey respondents said their buyers are borrowing money from family or friends in order to afford a home. Buyers are also compromising on home size, location or features in order to bring the price down, agents said, MSNBC said.
The vast majority of agents in CNBC’s survey said they expect home sales to either improve slightly or stay about the same in the next quarter, and about 17% expected sales to drop, the report said.
Other Findings
The survey also found:
• About 89% of agents who took CNBC’s survey reported having at least one seller reduce their asking price, and nearly a third said more than half their sellers dropped prices.
• Roughly 40% of agents said they had at least one seller delist their home, hoping to get a better price later.
