Rising rates will likely drive up housing-market competition in the short term.

Almost half (47%) of house hunters say they would feel more urgency to buy a home if mortgage rates rose above 3.5%. A lower share (29%) would look for homes in different areas or consider smaller houses, while 14% would slow their search in hopes of rates coming down again.

Meanwhile, 7% of respondents wouldn’t change their plans at all. Just 2% said they would cancel their plans to purchase a home if mortgage rates surpassed 3.5%.

That’s according to a Redfin-commissioned survey of 1,500 U.S. residents planning to buy or sell a home in the next 12 months. This report focuses on the 1,092 of those respondents who indicated they were planning to buy a home in the next year. The survey was fielded by research technology company Lucid from Dec. 10 to Dec. 13, 2021.

The interest rate on a 30-year fixed mortgage rose to 3.22% during the first week of 2022 from 3.11% the prior week, Freddie Mac said Thursday. That’s the highest level since May 2020, when the pandemic was just beginning. Redfin Chief Economist Daryl Fairweather expects rates to hit about 3.6% by the end of 2022.