Low Mortgage Rates Pushing Prospective Buyers Off the Fence
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.