NAR Economist Jessica Lautz gave a speech on demographics and behavioral insights discussing the fluctuations in borrowing costs having less of an impact on home buyers’ psyche than you would expect. With mortgage rates above the 6% range for the past six months, a quarter of real estate transactions were all-cash and mortgage lenders are reporting higher-qualified applicants for mortgages than any time in the past. This is a result of a lot of homeowners who were able to build equity in their homes with the rising home prices. Homeowners who’ve been in their home for a decade have an average of $200,000 in equity, Lautz said.
