It’s still too early to tell what will happen with the housing market, but there are some indicators that it may not turn out as bad as some are predicting.
Homebuyer demand continues to rise for the fifth week in a row. Mortgage applications rose 6% for the week ending May 15th.
Although many Americans are still under shelter in place orders, home purchase activity was only down by 1.5% from this same time last year. In addition, government mortgage applications are 5% higher than they were at this same time last year.
However, record unemployment rates are making it harder for lower-income families to own a home, which could make the housing market’s recovery more difficult.
Experts warn that we may not have seen the worst of the economic fallout from the coronavirus pandemic and how that will affect the housing market in the long term remains to be seen.
“The housing market has passed a big test by proving its resiliency to the immediate damage of a black swan event. But this sector, just like the broader economy, must still test its mettle over the longer-term.”