Low interest rates caused first-time homebuyer levels to surge

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The fear of missing out on historically low interest rates spurred first-time homebuyer activity in November, according to a Campbell-Inside Mortgage Finance study.

“The recent surge in interest rates has made potential homebuyers nervous,” said the survey’s Director Thomas Popik. “If rates go up much more, then a good percentage of them will no longer qualify for the properties they want. As a result, they’re making bids on homes and quickly closing before their rate locks expire.”

According to Freddie Mac, rates on a 30-year fixed rate mortgage are at 4.83-percent, up from a low of 4.17-percent in November.

Further analysis can be found here.