The relevant fact here, I think.
Also, isn't it true that a significantly high number of homes were bought with cash (no mortgage)? Not many have that kind of loot just lying around...
Also, a lot of investors are the ones buying up most of the homes (mostly foreclosed ones) in order to flip them, either now or at a later date when (if?) the economy recovers.
However, the 15 year refi is at an average of 3.18% per today’s Bloomberg market data. That’s the lowest it’s been since the 2.9 seen last year right before the fed began signaling the end of QE last year.
Low rates and low prices make it a buyer’s market. The drag is the stricter loan requirements, but that’s a good thing. Had one young friend sell at a loss this year, but in his case it was better to take that hit, because he had to move a house that a divorce had stuck him with.
People in know in new home sales say a large number of homes are being bought by investors. This same thing happened in 2007. And we know what happened.