While mortgage rates are in a downturn, a new survey finds most Americans complaining that elevated home prices are keeping them out of the housing market.
The survey of 1,003 adults conducted on March 2 by HomeServe, a leading residential infrastructure repair solutions company, found nearly two-thirds of respondents (62%) were aware that mortgage rates fell below 6% for the first time since 2022. On the plus side, nearly six in 10 (59%) said that news made them feel more positive about the housing market.
But while nearly half of respondents (48%) said mortgage rates below 6% makes them more likely to consider buying a home in the next 12 months — with 23% saying significantly more likely – 61% of respondents stated that home prices being too high was their biggest barrier to buying. And nearly half of current homeowners (47%) said they’re staying put because they already locked in a very low mortgage rate.
“Our research shows the math on buying a home simply doesn’t work for many Americans yet, and it’s a reminder that the purchase price is just the beginning,” said Myles Meehan, HomeServe’s senior vice president of public relations. “The ongoing costs of maintenance and unexpected repairs are a major part of the homeownership equation. For buyers stretching their budgets in this market, having a way to manage the financial uncertainty of a sudden repair is a crucial piece of the puzzle for achieving true peace of mind as a homeowner.”
