GREENSBORO, N.C.–(BUSINESS WIRE)–With so many people working at home due to COVID-19, housing is outperforming other segments of the economy, according to the Summer edition of The Housing and Mortgage Market Review (HaMMR), released today by Arch Mortgage Insurance Company (Arch MI), a leading provider of mortgage insurance.
There are a number of positives for the housing market that are likely to be strong enough to keep home price growth positive for the year.
“There are a number of positives for the housing market that are likely to be strong enough to keep home price growth positive for the year,” said Dr. Ralph G. DeFranco, Global Chief Economist for Arch Capital Services Inc. “The pandemic is boosting housing demand for homes with additional room for home offices, gyms and remote learning.”
Increasingly, buyers are looking for primary or second homes located outside big cities, but still within driving distance of their workplaces. They are leveraging historically low mortgage rates to buy properties with more indoor and outdoor space.
The year began with a large housing shortage, and home prices are up in all 50 states over the past year, with the fastest growth occurring in Idaho, Arizona, Montana, New Mexico and Wyoming. The slowest growth rate in home prices occurred in Hawaii, Illinois, North Dakota, Alaska and Iowa.
Commentary resources:
● The Housing and Mortgage Market Review is posted at archmi.com/hammr. The Summer 2020 issue focuses on home price growth, relocation trends, modeling forbearances and how the current housing environment compares to conditions in the five most recent recessions.
● Dr. DeFranco will host a Housing Update webinar discussing market conditions and the details of HaMMR on Wednesday, Aug. 5 (2:30 p.m. ET/11:30 a.m. PT). Registration is free at archmi.com/hammr.
About Arch Mortgage Insurance Company
Arch Capital Group Ltd.’s U.S. mortgage insurance operation, Arch MI, is a leading provider of private insurance covering mortgage credit risk. Headquartered in Greensboro, North Carolina, Arch MI’s mission is to protect lenders against credit risk, while extending the possibility of responsible homeownership to qualified borrowers. Arch MI’s flagship mortgage insurer, Arch Mortgage Insurance Company, is licensed to write mortgage insurance in all 50 states, the District of Columbia and Puerto Rico. For more information, visit archmi.com.
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