Loan Origination
Why Housing Market Potential Remains High By Mark Fleming, First American
T
he housing market’s impressive “V-shaped” recovery has thus far shown significant resilience to the economic impacts of the coronavirus pandemic. Demographicallydriven millennial demand has continued unabated, low rates have fueled house-buying power, and historically low inventory has increased competition, leading to rising prices. Weekly mortgage applications started the first quarter of the year approximately 10 percent above year-ago levels. After reaching a pandemic-induced low point in April, mortgage applications began to The MORTGAGE BANKER Magazine
accelerate and, starting in late May, have surpassed their levels from one year ago for 21 straight weeks. In September, housing market potential continued to impress, even outpacing last month’s record. Housing market potential increased to its highest level in over 13 years, largely driven by strong house price appreciation in September. HOUSING MUSICAL CHAIRS BOOSTS MARKET POTENTIAL In today’s housing market, fast rising demand against the limited supply of homes for sale has 40
November 2020
