Changing Dynamics in the Housing Market: Homebuyers Embrace Higher Rates and Adjustable-Rate Mortgages

Surging mortgage rates and record-high home prices are no longer deterring potential homebuyers, as they are "losing patience" and moving forward with their goal of homeownership, according to Bank of America's Homebuyers Insight Report. The report found that over a third of prospective buyers are no longer willing to wait for prices and rates to fall. The housing market has been struggling to regain momentum, with higher rates prompting sellers to stay put and exacerbating the inventory crunch. However, relief may be on the horizon as forecasts predict a decline in borrowing rates in the coming years.