Will Rising Interest Rates Reduce The Number Of Buyers?

 Redfin recently conducted a survey of Home Sellers, and I found the results interesting.  The survey stated Sellers are concerned with the recent rise in Interest Rates, because they feel rising Interest Rates will reduce the number of Buyers.  I would argue the opposite.

Most Borrowers I am presently Pre-Qualifying for Mortgage are telling me they want to purchase a home before Interest Rates rise higher.  They are concerned if they wait much longer to purchase, they will have to pay higher interest rates as Interest Rates continue to increase.

I have always believed the Housing Market would not see an increase in Buyers until Interest Rates started to rise.  There have been a number of articles that I have read that supported the same theory.  Greed always plays a major role in financial decisions, and some Borrowers did not want to purchase fearing they would not be getting the lowest Interest Rate possible.  Well those who waited made the wrong decision.  Their greed for lower Interest Rates, than the already ridiculously low Interest we had, is now costing them money and buying power.

Interest Rates are continuing to rise, and greed will be a motivating factor once again in the decision to purchase, only now in the reverse of what kept Buyers from purchasing before.  Now Buyers are beginning to panic they waited to long, and want to purchase not only before Interest Rates increase further, but also before Home Prices go up further as a result of increase demand for houses.

So Will Rising Interest Rates Reduce The Number Of Buyers?  Not from what I am seeing.  The rising Interest Rates is motivating Buyers to purchase instead of waiting.  Rising Interest Rates are creating a rise in demand, and rise in urgency from Buyers.

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