Housing market appears immune to economic downturn

Housing market appears immune to economic downturn

Housing market appears immune to economic downturn
The combination of a volatile stock market, shuttered businesses and record unemployment spell trouble for the economy. Bu the saving grace may be the U.S. housing market which appears to have weathered the worst of the pandemic thus far, unscathed.

A housing market collapse was the harbinger of the Great Recession in 2008 but appears to the most stable sector of the economy during the coronavirus pandemic. Demand for housing coupled with historically low mortgage rates is the driving force behind the continued positive movement in the housing sector.

In a survey conducted by Reuters of housing industry experts, two-thirds of respondents say the biggest threat to the housing market is a rising unemployment rate. However, as previously closed businesses return, that threat will gradually lessen.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.625 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.