January 27, 2011 - A recent report shows first-time homebuyers returned to the market in droves toward the end of 2010, hiring moving companies and closing on mortgages in anticipation of climbing mortgage rates.

According to the Campbell Surveys/Inside Mortgage Finance HousingPulse Tracking Survey, first-time buyers represented 37.7 percent of all real estate transactions in December. That was slightly above the share from November - 37.2 percent - and well above levels from October and September, when first-time buyers were content to wait on the sidelines and see if mortgage rates fell any lower. Once rates started to climb in mid-November, however, many realized their needed to pack their moving boxes sooner rather than later, said the report.

Experts added those moving to new homes had a large number of properties to choose from, which could have encouraged buyers to shop sooner rather than later.

"The combination of increased property supply and growing homebuyer demand caused a blow-out month for home sales," said Thomas Popik, research director for Campbell Surveys. "We knew this was coming because average transactions for our survey respondents rose from 2.9 in November to 3.4 in December."

Most analysts expect mortgage rates to climb throughout 2011, which may encourage first-time buyers and current homeowners to rent their moving trucks and buy a new home quickly.

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