There are three reasons why the housing remains a bright spot for the United States economy, according to Len Kiefer, deputy chief economist Freddie Mac’s Economic & Housing Research Group, Freddie Mac

“First, low mortgage interest rates provide a significant lift to housing markets,” Kiefer said in a statement. “Second, while there are still elevated levels of unemployment, the brunt of the Coronavirus recession has not (yet) hit owner households. The direct effects of the pandemic and associated shutdowns have primarily hit the renter population.

“In addition, there has been significant support for U.S. housing markets beyond low interest rates in the form of forbearance programs and foreclosure moratoria, which have prevented any fire sales that would lead to possible house price declines. Third, there has been a strong undercurrent of housing demand, driven primarily by demographic forces (the aging Millennial generation, who are entering peak homebuying years), but also possibly accelerated by a shift in preference toward single-family housing and away from apartments and condos in dense urban areas.”