Housing finance: Insights on the new normal (week 50, 2021) | American Enterprise Institute

Key takeaways:

• Purchase volume in week 50 continues to be strong, up 19% over the same week in 2019, and down 6% compared to 2020’s pandemic distorted level. Year-to-date volume is up 1% and 26% over 2020 and 2019 respectively.
• Relatively low mortgage rates, along with supply constraints, a strong wealth effect from monetary stimulus, and Work from Home flexibilities are fueling historically high HPA. HPA in the mid-teens is projected to continue for the month of January 2022.

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