An Increase in Housing Demand Sparked by Lower Rates
It is reported that the share of prospective buyers increased by 5 points in a single quarter at the end of 2022. The retreat in mortgage interest rates during the first quarter of 2023 (from the 20-year peak reached in the fall of 2022) led a record share of adults in the US. 
This meant that 18% of adults said that they plan to purchase a home within a year. The share rose in every region across the country from the last quarter of 2022 to the beginning quarter of 2023. The Northeast rose from 11% to 19%, the Midwest from 10% to 14%, the South from 14% to 17% and the West from 14% to 23%).
This also was the case with first-time buyer share which also rose in all four regions between the last quarter of 2022 and the first quarter of 2023. The Northeast saw an increase from 64% to 66%, Midwest 58% to 67%, South 60% to 68% and the West from 62% to 75%.
These results are derived from the Housing Trends Report (HTR). This report is produced by the National Association of Home Builders’ Economics team. The team measures prospective home buyers’ perceptions about the affordability and the availability of homes for sale in their market. The Housing Trends Report runs every quarter to track changes in buyer’s perceptions over time.
