What's The Current MAGIC Mortgage Rate? | Housing Sentiment Survey Addressing Transactional Topics
Real Estate Insight
Hello
In a recently completed consumer survey on housing sentiment by ResiClub, in partnership with TurboHome, a total, of 423 adults participated between July 2 and July 23, 2025 with input on popular topics.
Ownership/Occupancy Profile Of The Respondents
⭐ 80% own their primary home.
⭐ 17% rent their primary residence.
⭐ 3% live with family or friends and pay no rent.
The MAGIC Mortgage Rate
Homeowners, excluding those who said they "plan to never sell" or "would pay all cash" for their next home were asked what is the highest mortgage rate they would accept on their next home purchase.
The magic mortgage rate is the tipping point beyond which most consumers say they would not buy a home, per John Burns Research and Consulting. The graph renders an upward shift on that rate vs the last survey period.
⭐ Q1 2025: 54% of homeowners stated they would accept a mortgage rate <=5.5%, with only 41% stating they would accept up to 6.0% on their next purchase. The magic mortgage rate during the period was 5.5%.
⭐ Q3 2025: an upward shift to 52% of homeowners stating they would accept a mortgage rate <=6.0%. The magic mortgage rate during the period was 6.0%.
Here’s what that statistic seems to be telling us:
1️⃣ Most home buyers’ willingness to accept a 50 bps higher mortgage rate may be reflecting a slightly increased affordability.
2️⃣ The historically low closed sales metric experienced nationally may be non-empirical, anecdotal evidence that UNCERTAINTY, resulting from the tariffs and other elements of the Administration, is causing buyer trepidation from engaging, even with the improved affordability. It remains to be seen whether that improvement will be validated by the Housing Affordability Index to be released as part of the next existing home sales stats package on August 21.
Satisfaction With The Last Real Estate Agent Used In A Transaction
Overall Value Of Their Last Real Estate Agent
The majority (77%) of homeowners surveyed felt that their last real estate agent provided valuable services.
Justification Of Real Estate Fees
The majority (72%) of homeowners surveyed felt that the real estate fee paid to the agent with whom they most recently worked was justified.
Feelings About Agent Compensation Structure
Even While Working With A Real Estate Agent, Principals Are Digitally Engaged
Likeliness To Use A Digital Tool To Draft A Contract
Attitudes toward technology are enticing 81% of transaction principals to say they would be likely to use a digital tool to draft their real estate contract, with 45% stating they would be “very likely” to do so.
🚨 DANGER WILL ROBINSON 🚨
It cannot be stressed enough that this approach can be extremely hazardous to your financial health since real estate contracts have evolved into complex instruments. They must be stratified to provide maximum protection for you and your side of the transaction.
My knowledge of the Florida Realtors/Florida Bar ASIS-7 Rev 12/24 Contract For Sale And Purchase (13 Pages) is thorough and comprehensive, corner to corner, and I frequently attend attorney hosted webinars on the Contract, its updates and riders, sponsored by Florida Realtors and the Board of Realtors. Additionally, a real estate attorney from my preferred referral short list is typically on standby, prior to closing, for special situations that may arise during negotiation along the transaction timeline.
🚨 PLEASE DO NOT NAVIGATE THE CONTRACT MINEFIELD ALONE 🚨
Much appreciation to Lance Lambert and Meghan Malas at ResiClub for their contribution of data, statistics and graphs.
REAL ESTATE IS DRIVEN BY THE 10-YEAR TREASURY YIELD WHICH REACTS TO THE INFLATION OUTLOOK, ECONOMIC CONDITIONS AND GEOPOLITICAL EVENTS
Ask What's Happening With Real Estate In Your Community And To Be Added To My Monthly Real Estate Insight Newsletter Email Group.
JerryKopensky@gmail.com
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Jerry Kopensky, REALTOR®
Luxury Lifestyle Property Marketing Adviser
BERKSHIRE HATHAWAY HomeServices Florida Realty
2754 North University Drive
Coral Springs, FL 33065
Serving The State of Florida
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Email: JerryKopensky@gmail.com
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