Low Mortgage Rates Pushing Prospective Buyers Off the Fence

Economics
Economics Icon
Published
Of the 11% of American adults considering a future home purchase in the second quarter of 2020, about half (49%) are not simply planning it, they are actively engaged in the process to find a home, according to the latest quarterly Housing Trends Report. That is a significantly higher share than the comparable figure a year ago (41%), which suggests that the COVID-19 crisis and its accompanying record-low mortgage rates have converted some prospective buyers into active buyers. Of millennials planning a home purchase in the next year, 57% are already actively searching for a home. Among baby boomers, that share is only 37%. Across regions, prospective buyers in the Northeast are the most likely to be actively engaged in the purchase process (57%), compared to 44% in the Midwest, 45% in the West, and 50% in the South. The Housing Trends Report is a research product created by the NAHB Economics team with the goal of measuring prospective home buyers' perceptions about the availability and affordability of homes for-sale in their markets. Rose Quint, NAHB's assistant vice president for survey research, provides more details in this Eye on Housing blog post.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe