Are US Homebuyers Adapting to Higher Mortgage Rates, Home Prices?
The share of homebuyers actively engaged in home purchases was essentially unchanged from the first quarter of 2023 to the second quarter of the year
Aug. 1, 2023
Image: Monster Ztudio / Stock.adobe.com
Despite deteriorating affordability amid rising mortgage rates and historically high home prices, the share of prospective homebuyers who are actively engaged in the purchase process remained essentially unchanged between the first and second quarters of 2023, falling just 1% from 56% to 55%, NAHB Eye on Housing reports. That consistency means that Americans are adapting to a more costly homebuying landscape, and some are even willing to spend more money to find a home.
From the first to the second quarter of 2023, the share of prospective buyers actively searching for a home declined in the Northeast (63% to 60%), South (51% to 48%), and West (66% to 58%), but rose in the Midwest (45% to 56%).
The combination of slightly softer demand plus increased production by builders is helping some of these engaged buyers find a home in less time. From the first to the second quarter of 2023, the share of active buyers who have spent 3+ months searching for a home eased a bit, going from 71% to 69%.
