Falling mortgage rates don't turn renters into first-time home buyers, according to a recent survey from the National Association of REALTORS®.
The trade group’s annual Home Buyer and Seller Generational Trends Report asked new homeowners in their 20s and 30s for the number one why they bought a home when they did.
The majority said: “it was just the right time.” By comparison, only 6 percent said they bought because “mortgage rates were low”.
The study disproves the idea that falling mortgage rates lead to higher rates of homeownership.
Data also disproves it.
Between 2010 and 2015, mortgage rates steadily dropped, yet homeownership fell its lowest point since the 1980s.
The National Association of REALTORS® survey shows that buying a home is an emotional or life-based decision more than it's than a financial one.
At today’s mortgage rates, a house payment is about the lowest in recorded history. But, if interest rates moved up, would an extra $50 or $100 in your payment per month keep you from homeownership?
Probably not, shows the survey.
When your goals aren’t financial, low interest rates don’t cause you you move. Your instincts do.
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