Many potential homebuyers are not in the market to buy because of feelings financial instability, according to a survey released by banking data firm RateWatch [1] Thursday.
In fact, Debra Borchardt, Market Analyst for TheStreet [2], which owns RateWatch, said the survey revealed a full quarter of potential homebuyers "just don't feel financially stable enough to commit to a house."
The survey, Home Lending: Today's Customer [3], shows that 38 percent of non-homeowners making between $100,000 and $149,000 surveyed listed financial instability as a contributing factor for not buying a home. This was consistent across all income brackets studied, with the lowest percentage—still a sizable 24 percent—being attributed to those making an annual household income of over $150,000.
Borchardt highlighted the significance of the data, saying, "It's understandable that someone making less than $25,000 a year doesn’t feel like they can afford a home, but it's shocking that someone who makes over $150,000 a year feels equally as poor. Higher home prices could be a good reason why with homes hitting record high prices and inventories hitting a low."
RateWatch's data also revealed that 81 percent of current homeowners have no plans at this time to purchase a different home.
In addition, consumers' most important factor when choosing a lender is the interest rate, with most naming between 4 and 5 percent as the maximum they would pay on a 30-year fixed-rate mortgage.