Prospective homebuyers aren’t being scared away by rising mortgage rates — even if they creep up over 5 percent for a 30-year mortgage — according to a new study from Redfin.

Of the more than 1,300 respondents surveyed by the Seattle-based real estate brokerage in May, only 5 percent said they’d call off their home search if rates — which recently climbed to 4.5 percent — hit the 5 percent mark. Conversely, 24 percent said such an increase would have no impact on their search.

“Homebuyers are well-aware that higher mortgage rates means higher monthly payments, but mortgage rates remain very low, historically, and buyers will make compromises,” said Taylor Marr, senior economist at Redfin in a release.

“Most of the pressure buyers are feeling is from competition for a very limited number of homes for sale. The fact that such a small share of buyers will scrap their plans to buy a home if rates surpass 5 percent reflects their determination to be a part of the housing market.”

The data is pretty consistent with similar surveys, that Redfin conducted in both May and November of 2017.

The survey reached out to 4,264 people from the general population who had indicated they had either bought or sold a home sometime in the past year, tried to buy or sell a home within the past year or plan to do so this year, according to Redfin.

Mortgage rates have stabilized in recent weeks, according to the latest data released by Freddie Mac, after rising steadily from 4 percent to slightly more than 4.5 percent over the past year.  

Email Patrick Kearns

Back to top
The best event in real estate kicks off next week! Tickets are selling quickly.Register Now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription