Existing-home sales are booming

Existing-home sales posted a second month of gains in July, with a 24.7% month-over-month increase from June, overturning the June record of 20.7% for monthly gains, according to an August 21 report in Mortgage News Daily. “The housing market is well past the recovery phase and is now booming with higher home sales compared to the pre-pandemic days," said Lawrence Yun, chief economist with the National Association of Realtors. “With the sizable shift in remote work, current homeowners are looking for larger homes, and this will lead to a secondary level of demand even into 2021.”

Purchase housing demand continues to accelerate

Freddie Mac reported on August 20 that mortgage rates have ticked up slightly but are still near historic lows. “Purchase housing demand continues to accelerate, ultimately providing support to an economy that otherwise has stagnated. The surge in sales led to a rapid increase in the demand for remodeling and home furnishings as consumers look to renovate while adjusting to home life during COVID.”