Impact of Interest Rate Rises

With another interest rate rise just announced people lookin to purchase property are concerned about the impact interest rate rises will have on their purchasing decisions. This and other questions were answered by a recent survey conducted in late March which has revealed the effect interest rate increases are having on buyer’s confidence in 2010.

The survey, which was completed by 1,100 potential buyers found that buyers are clearly concerned by the 6
interest rate rises since October last year.  When asked ‘Will further increases in interest rates cause you to delay purchasing a property,’ 70% answered ‘yes’ or ‘maybe’ signifying buyers apprehension about further rises in the year ahead.

Of those surveyed who answered ‘yes’ or ‘maybe’ there was a fairly alarming amount who said they would cease their housing search at what seems a fairly low increase.
When asked ‘How much of an increase would cause you to delay buying?’ The results were as follows:
-          0.1%-0.5%,                  18 per cent
-          0.6%-1%,                     29 per cent
-          1.1%-1.5%,                  24 per cent
-          1.6%-2%,                     10 per cent
-          Over 2%,                     18 per cent

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