Low Mortgage Rates Converting More Passive Buyers into Active Buyers
NAHB’s most recent Housing Trends Report finds that, of the 13% of American adults considering a future home purchase in the third quarter of 2020, 50% have moved beyond planning and are actively trying to find one to buy — compared to 44% a year ago. The COVID-19 pandemic and record-low mortgage rates are likely contributors to this increased activity.
The jump in interest primarily comes from Millennials (58%) and Gen X (52%), with the West, Northeast and South each seeing activity increase by 5 percentage points or more over the previous year.
More market activity also means buyers are spending more time looking for a home, with 62% of active buyers spending 3 months or more looking for a home, compared to 58% a year earlier.
Rose Quint, NAHB’s assistant vice president for survey research, provides more information in this Eye on Housing post.
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