Some homebuyers could be experiencing a spell of buyer's remorse, according to a new survey from LendEDU. With mortgage rates at an all-time low, home purchases and refinances soared during the pandemic, with purchases up 22% and refinances up 84% compared to the same period last year. To review these trends, LendEDU surveyed 1,000 homeowners with an outstanding mortgage, and it found that 55% of new homeowners regret taking out a mortgage during the pandemic. 

Of existing homeowners with an outstanding mortgage, 6% have taken out a mortgage during the pandemic, and 72% of new homeowners said they decided to purchase their home because of the low interest rates triggered by the pandemic. Of the 55% expressing remorse, 30% wish they had waited to purchase a home for financial reasons and another 7% of new homeowners said that they are not prepared for homeownership. 

It isn't surprising that the pandemic brought a surge in new homeownership rates. Following the start of the pandemic and the subsequent economic turmoil, mortgage rates hit all-time lows. Simultaneously, the outbreak significantly impacted city centers like Los Angeles and New York City, and offices shut down and businesses adopted work-from-home policies. The combination catalyzed demand for suburban homes in "safer" sprawling markets outside of city centers. 

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.