The housing market has been one of the few areas to show continued strength in the recovery from the coronavirus pandemic recession. Where the labor market recovery has slowed and consumer sentiment is waning as new COVID-19 cases tick up, the housing market has had a strong rebound.
"The resilience of the housing market continues as mortgage rates hit another all-time low, giving potential buyers more purchasing power and strengthening demand," Sam Khater, Freddie Mac's chief economist, said in a statement. "We expect rates to stay low and continue to propel the purchase market forward. However, the main barrier to rising demand remains the lack of inventory, especially for entry-level homes."