NAHB: Despite Higher Mortgage Rates, Many Americans Still Desire Homeownership


Despite mortgage rates topping 7%, Americans persist in their desire to buy a home, a report from the National Association of Home Builders (NAHB) finds.  

According to the association’s latest Housing Trends Report, the share of adults with plans to purchase a home within a year increased to 17% in the third quarter, up from 15% in the second quarter. 

The share has fluctuated up and down without a clear trend for over a year, likely due to the push-pull between two opposing forces: higher interest rates/home prices and persistent demand stemming from demographic growth, NAHB says.

Meanwhile, interest for newly built homes continues to rise as the existing-home market has dried up in many areas. In the third quarter, 27% of prospective buyers were looking to buy new construction.

At the same time, the Census Bureau’s Housing Vacancy Survey shows the U.S. homeownership rate was 66% in the third quarter, amid persistently tight housing supply and elevated mortgage interest rates.

Photo: Tierra Mallorca

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