Home-buying is not a snap decision -- people mentally prepare for it and search for homes, and this is a three-to-four-month process. Plus, even with the rise in mortgage rates, they're still below last year's figure and still close to 45-year lows.
The fundamental demand from entry level buyers, dominated by the second-largest generation in U. S. history the children of the baby boom will drive home sales over the next 10 years because this generation is entering the prime (home-buying) years,
Clearly, mortgage interest rates that are near 30-year lows are bringing many buyers into the market at the beginning of the traditional home-buying season, ... and we're counting on the Federal Reserve to continue its accommodative interest rate policy to keep housing strong.
March is much more predictive of upcoming (home-buying) behavior.
This spring home-buying season promises to be like no other before it, because it will be the first time consumers have these incredible tools literally at their fingertips to help them perform their research and ultimately find their next home.
Is this going to send the housing market into contraction No. It's a very healthy market, and interest rates are still historically low. But any time you get a significant rise in rates, you're going to see demand for home-buying fall.
There is a real need among homeowners and realtors to get information to help them make good home-buying and home-selling decisions. We're going to provide that, even if it doesn't always have to do with home warranties. That's just our belief in providing superior service.