Mortgage Defaults Impacting the Housing Market: A Potential Trend in Real Estate?

Mortgage defaults are beginning to affect the housing market, according to a broker. This is an indication of a potential trend in the real estate market.

Mortgage and Real Estate Statistics

The mortgage and real estate industry has seen tremendous growth in recent years. According to the National Association of Realtors, existing home sales increased by 6.5% in 2020 compared to 2019, while new home sales increased by 20%. Additionally, the average 30-year fixed mortgage rate dropped from 3.87% in January 2020 to 2.68% in December 2020, making it more affordable for people to purchase a home. The median home price also rose significantly during this time period, increasing from $269,000 in January 2020 to $313,000 in December 2020. These figures demonstrate that the housing market is booming and that mortgages are becoming increasingly accessible for potential buyers.
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Picture source: Sharon Pittaway