The apartment and industrial sectors are seeing strong growth. Retail is also recovering given the rising demand for online shopping. The office sector is starting to recuperate at a modest pace due to job growth and because some workers are heading back to the office.
With people returning to physical stores and food and drinking places, demand for retail space in Q2 2021 exceeded pre-pandemic peak levels.
Mortgage rates rose sharply to 3.05% this week from 2.99% last week as consumer and producer prices continue to inflate due to persistent supply bottlenecks and labor difficulties. NAR forecasts the 30-year fixed mortgage rate will reach 3.6% by mid-2022.
The National Association of Realtors® has released its statistical & forecast news release schedule for 2022.
Inflation is lingering amid the strain on supply chains, labor difficulties, and rising rent prices.
Over the last 12 months consumer prices rose 5.3% compared to 5.4% in both July and June 2021.
Total retail sales continued to steadily increase from the beginning of the pandemic through Q2 2021 as sales increased from $1.3 trillion in Q2 2020 to $1.6 trillion in Q2 2021, for a year-over-year growth rate of 28.2%.
At the national level, housing affordability slightly inclined in July 2021 compared to the previous month.
National Association of REALTORS® has created the Homebuilders’ Local Opportunity Index (HLOI), which measures both short-term and long-term opportunities for homebuilders at the local level, with the purpose of identifying the areas where homebuilders can build more homes with less risk for their business.
A strong labor market and higher consumer and producer prices overshadowed COVID-19 concerns, raising yield and mortgage rates. The 30-year fixed mortgage rate increased to 2.87% from 2.77%, but even with this increase, mortgage rates are still near historic lows.
