Three-quarters of homebuyers say the eye-popping rates are having an impact on their house shopping.

Americans are going big and going home — with help from the lowest rates on home loans in history. Today's deeply cheap rates are allowing house shoppers to buy more expensive homes, often larger ones in more desirable parts of town, a new survey says. These low rates have been pushing house prices higher by boosting demand for homes at a time when fewer are going on the market. Three-quarters of homebuyers say the eye-popping rates are having an impact on their house shopping, according to a Realtor.com survey.

The savings most often are allowing buyers to look for bigger homes in nicer neighborhoods, the survey says.  At today's interest rates, the payment for a typical home is $125 a month lower than it would have been at last year's rates, says Danielle Hale, Realtor.com's chief economist. Ultra-low interest rates aren't the sole reason many current house hunters are aiming higher. Nearly two-thirds say COVID-19 stay-at-home orders have helped them save more money. Not only are rock-bottom rates luring buyers into the housing market, but they're also encouraging homeowners to refinance their home loans, save heaps of money, and stay put in their houses.

Source: Yahoo Finance