A new survey has found concern over rising mortgage rates is surging.
Redfin's survey of home sellers has found 47% of prospective sellers were worried rising rates could cause a decrease in buyer demand. The result is up from 23% in the second quarter.
But the survey has revealed encouraging results as well. In spite of rising rates, 48% of respondents believe now is a good time to sell. Additionally, 45% believe now is a good time to buy. While the result represents only a 1% rise from last quarter, it is the first increase in buying confidence in more than a year.
While the result may seem counterintuitive given the trend of rising interest rates, Redfin Los Angeles real estate agent Eric Tan said the uplift in rates may actually be spurring buyer activity.
"Of course home sellers are worried about interest rates, but the reality is that many buyers believe that rates will continue to go up. They know if they don't move now, they might be kicking themselves all over again in three months," Tan said.