Most homebuyers in the United States are unlikely to reconsider going back into the housing market unless mortgage rates dip to 4%.
That is according to the findings from a recent CNET survey, which polled 2,368 adults aged 18 and older in the country between Aug. 19 to 21.
Of all adults, only 4% said they would consider purchasing a home at a mortgage rate of 6%. For perspective, the contract rate for the 30-year mortgage term averaged 6.72% in the week ending Oct. 31, per data from Freddie Mac's Primary Mortgage Market Survey.
However, half of all adults surveyed by CNET said they would reconsider buying a home if mortgage rates fell to 4% or below.
That said, roughly 29% of adults in the US noted that no mortgage rate would push them to reconsider buying a home or refinancing their mortgage.
READ ALSO : September Home Sales Dropped To Lowest Level in 14 Years Amid High Mortgage Rates, Lack of Options
What Else Can Bring Buyers Back to the Housing Market?
In addition to lower mortgage rates, 45% of US adults surveyed said lower home prices could also push them to purchase a home.
For perspective, the median sale price of a typical home in September was $427,496. That marked a 3.8% year-over-year increase from the same month last year and a 4.5% increase from September 2019, according to Redfin.
At least 31% of adults also said they could consider buying a home if they get a raise or a higher wage. In 2022, the median sale price of a home in the US was 5.6 times higher than the median household income, per the Joint Center for Housing Studies of Harvard University.
Other factors that could play a role in their decision to purchase a home included saving enough for a down payment (33%), saving for other housing costs like insurance (20%) and having more choices in the market (21%).
How Could Homes Become More Affordable in 2025?
Daniell Hale, Chief Economist at Realtor.com, noted that the housing market would need more inventory for prices to fall.
"In order to improve housing affordability, we need to add more housing capacity," she told The Street. "We need to see more for-sale and more for-rent homes built - both single and multi-family homes."
