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Zillow Research

As Fed Raises Interest Rates, Homebuyers’ Plans May Bend, But Not Break

Americans are broadly aware of these looming interest rate hikes, and they are certainly giving some would-be home buyers pause. For a few key demographic groups – including current renters and younger would-be buyers – rising interest rates could lead to changes in their home buying plans. But overall, a modest increase in mortgage interest rates is unlikely to completely de-rail most buyers’ plans.

The Evolving First-Time Homebuyer

The role of first-time homebuyers in the real estate market has remained remarkably constant – and hugely important – over the years. But while the role of first-time buyers hasn’t changed, the defining characteristics of first-time buyers, and what they’re looking for in a first home, is constantly evolving.