Record-low mortgage interest rates, the increased need for more spacious, multifunctional homes during the coronavirus pandemic, and timelines that no longer necessarily revolve around the start of the school year have fueled homebuyer demand so much that fall is looking more like a new spring in the housing market this year.
“This spring was like no other,” Brian Rubenstein, senior director of mortgage at online lender Ally Home, told Inman in a phone interview. “The pandemic and the market dislocations were quite unprecedented.”
Due to the pandemic, the Federal Reserve has kept interest rates low in an effort to shore up a faltering economy, and rates for 30-year fixed-rate mortgages have been hovering around 3 percent. This week, National Association of Realtors Chief Economist Lawrence Yun declared that 2020’s housing market was outperforming 2019’s housing market and predicted that this year’s home sales would end up higher than the 5.34 million homes sold in 2019.
Rubenstein doesn’t expect rates to rise and that means that the market will likely see what he called an “extended spring cycle.”
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