Mortgage rates are at the lowest levels in 50 years, falling below 3% earlier this month, all while the economy continues to tread water amid the COVID-19 pandemic. What brought us to such low mortgage rates?
HousingWire’s guest columnist Shant Banosian offers analysis at HousingWire.com, and the good news for lumber and building materials dealers, is that new construction is important to a low-inventory, mortgage rate-friendly market. Add to that the homeowners’ realization that they can work from home and spread out to the suburbs, more custom homes are being built.
“Homebuilders saw the strongest June sales since the last housing boom. Sales of newly built homes jumped 55% annually in June,” Banosian said. “We’re seeing more new construction in the suburbs as the pandemic is pushing from the cities. We’re also seeing the desire for more customization in homes as people spend more time in them in the new normal. It was the largest annual gain since homebuilding began again following the epic housing crash a decade ago. It is also the highest pace since the height of the unprecedented housing boom in 2005.”
See more from Banosian at HousingWire.com.