“Despite the stronger economy, the housing market is experiencing a slowdown in purchase application activity due to modestly higher mortgage rates,” said Sam Khater, Freddie Mac’s chief economist. “However, it has yet to translate into a weaker home price trajectory because the shortage of inventory continues to cause pricing to remain elevated.”
Another report Thursday found that Americans moved to slightly bigger homes in less expensive areas. On average, people who moved to a different city in 2020 ended up in a ZIP code where average home values were nearly $27,000 lower than in their previous ZIP code, according to Zillow.
Rising prices, a dearth of homes on the market and the ability to work remotely motivated many Americans to relocate last year.