HousingWireHousingWire
High interest rates and home prices are causing some prospective homebuyers to avoid applying for a mortgage. But despite this trend, some buyers are willing to adjust their loan term expectations to achieve homeownership, according to a recent report by real estate technology company REsimpli.
REsimpli questioned 1,200 respondents who had plans to buy or upgrade a home this year. The goal of the survey was to highlight how market trends can reshape the mortgage market in 2025. According to the survey, nearly 73% of surveyed mortgage borrowers were willing to extend their mortgage terms to lower their monthly payments.
High home prices, cited by 45% of respondents, were the most concerning factor among potential buyers, followed by rising mortgage rates at 25%. Other issues mentioned include down payments, property taxes and maintenance costs.
Consumers also said they were willing to tackle renovation costs if it meant achieving homeownership, according to the survey. RESimpli found that 80% of respondents are open to purchasing a home that requires significant renovation.
Younger homeowners are more likely to pursue renovations, despite rising renovation costs. A recent survey by This Old House showed that 48% of homeowners planned to pursue a renovation in 2025. And RESimpli noted that “this openness to fixer-uppers suggests buyers are unable to find affordable homes on the market,” since only 20% of respondents expressed a lack of interest in homes with rehab needs.
Most of the survey’s respondents were pessimistic about the housing market in 2025, with 64% believing that a home purchase would be more difficult. But 31% foresaw “little to no impact” on their ability to buy.
Home sales have already taken a hit going into the latter half of February. Altos Research president Mike Simonsen’s newest market report highlighted stagnating home sales as only 54,000 listings remained unsold this week.
