A majority of prospective homebuyers would welcome a recession if it means lower mortgage rates, a new survey finds.
The survey, conducted by Harris Poll on behalf of Credit Karma and designed exclusively for USA TODAY, was conducted between May 24-26 among 2,053 adults ages 18 and older. Of those surveyed, 264 had purchased a home in the past two years, while 579 said they plan to buy a home in the next three years.
The results found that 64% of those surveyed are “ready for a recession” if it means they are better able to afford a home.
Affordability has increasingly been a challenge in the housing market, which is dealing with mortgage rates between 6% and 7% and home prices that remain high due to a near record lack of inventory.
That explains why 82% of those surveyed said they believe the country is facing an unprecedented housing affordability crisis, and why 61% of those who have never bought a home think they’ll never be able to afford one.
“There is no denying how difficult it’s become to purchase a home in America today, especially for first-time buyers,” Aniva Hinduja, general manager of home and mortgage at Credit Karma, told USA TODAY. “When a majority of potential homebuyers are wishing for a recession so they can afford a mortgage, you know the situation is dire.”
Other Highlights:
- Among homeowners who bought in the past year, 46% say they are struggling to afford their monthly mortgage payments due to high interest rates
- For those who recently bought a home, 36% used money from savings, 37% used money from another home sale, 16% paid in all cash, 19% used money gifted from family. Also, 7% took an adjustable-rate mortgage (ARM) and 9% did a mortgage rate buy-down.
- 84% of recent homebuyers (those who purchased in the past year) say they made sacrifices in order to buy their home, with 3% saying they paid more than they budgeted. The sacrifices included:
- 25% limited/stopped spending on non-necessities;
- 23% bought a smaller home than they wanted.
- 22% Took on a side hustle to make extra money;
- 20% gave up certain desired home features; and
You can read the full study here.
