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A Mixed Bag Of Emotions About Housing Market

Nov 11, 2022
Millennials are plunging ahead into homeownership, despite the growing expense contributed by rising interest rates, according to new data from Ellie Mae
Staff Writer

A survey done by Offerpad reported that more than a third of Americans are hopeful about the housing market, despite recent shifts.

KEY TAKEAWAYS
  • One in four buyers remain pessimistic about the housing market and 15% say they are confused by it. 
  • Nearly a third of surveyed buyers cited high mortgage rates as their number one concern.

Despite ongoing challenges within the housing market, buyers are reporting a mixed bag of emotions rather than resorting to total pessimism. In fact, more than a third of buyers surveyed by real estate tech company Offerpad feel hopeful about the current housing market. 

The survey also reported that one in four buyers remained pessimistic and 15% say they are confused by it. 

As sellers continue to warily approach the market, inflation and rising interest rates are their top concerns. Of those surveyed who plan on selling a home in the next six months, 37% said the economy and inflation were their biggest concerns. Over a quarter said rising interest rates were a top concern, and 25% said they’re most worried about affordability. 

High mortgage rates continue to be a worry for current buyers, with 32% of surveyed buyers citing high rates as their number one concern. With inflation also a looming concern for buyers, 22% said that they worried about overpaying for a home. 

Interest rates also continued to hold buyers back, with 34% blaming interest rates as what is preventing them from buying a home. Geographically, 42% of survey respondents living in the West were the most likely to say interest rates are impacting their ability to buy a home. 

Offerpad also found that 22% of millennials said they purchased a home in the last six months compared to just 7% of Gen X and 3% of baby boomers, making millennials the largest share of current homebuyers.  

About the author
Staff Writer
Sarah Wolak is a staff writer at NMP.
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