According to the Mortgage Bankers Association, applications to purchase a home are up nearly 20% from a year ago, and purchase loan applications are at their highest level in over a decade.
That means even during the coronavirus pandemic, people are purchasing homes.
Low Mortgage Rates
The 30-year fixed mortgage recently fell below 3 percent for the first time since Freddie Mac began tracking mortgage rates in 1971; and this has made owning a home more affordable.
As an example: $340,000 home would have cost about $1,260 a month a year ago when the typical mortgage rate was 3.75 percent. Today it costs $1,140.
House in the Suburbs
Home buyers are looking for more space; less crowds; and room for social distancing. Buyers want a house where they can work from home; space for family; and backyards that will replace weekend getaways.
Add to that, kids attending school online; instead of going to a neighborhood school.
People want to escape the density of the cities to live more remotely. Some want to become self-reliant by planting gardens; others want to have a chickens that lay eggs; and some just want a large yard where their kids can play outside.