Homeowners in the United States Got $2 Trillion Richer due to the rise of mortgage prices

Today in the United States, real estate with a mortgage accounts for more than 60% of the market. In the first quarter of 2021, such objects rose in price by about 20%, which was expressed in the equivalent of about $2 trillion. Speaking about the earnings of individual owners, we can name a figure of about 33 thousand dollars.

What caused the rapid growth in demand for housing with mortgages?

Trends in the US real estate market have changed significantly during the pandemic:

• many people have switched to remote work and thus are not tied to their offices anymore;
• others have decided to move to suburbs in order to obtain more comfortable living conditions in the event of re-introduction of quarantine restrictions and mandatory self-isolation.

Because of this, the demand for comfortable homes in the secondary market has grown. The reason for the increase in the number of people willing to obtain mortgages is due to the low rates offered by banks due to the pandemic.

It is worth noting that the assets of citizens of the United States and other countries have grown during the period of quarantine restrictions - during this time, people began to spend less on travel, business trips, etc. Having accumulated funds many decided to invest into real estate - from small apartments to large comfortable villas.

Experts point out that this trend will continue in the near future. There is no need to wait for a reduction in prices. But at the same time, an increase in demand can be expected, since there are some buyers who prefer to wait until the pandemic is over. At the end of the quarantine period, they can actively start shopping, which will be an additional incentive to increase the value of properties in the US real estate market.