NAR 2022 Snapshot of Race and Home Buying in America
Since 2006, 2021 was the best year for the real estate market in the last 15 years. Home purchases surged over the past year in an abnormal way. Even though home prices hit record highs eroding affordability, the housing market outperformed. The main driver of this booming housing market was record-low mortgage rates, as the interest rate on a mortgage has a direct impact on the size of a mortgage payment. Higher rates increase mortgage payments while higher rates typically reduce the amount of money that people can borrow.