We find ourselves at the start of 2021, a fresh, new year. Plenty of us will continue to type “2020” or write it on our checks. Politics is still front and center in the headlines, as well as the stimulus package and the pandemic. Through it all, we continue to help our borrowers achieve the dream of home ownership, or save money through refinancing with us. You may, or may not, wonder, “How might a vaccine being made publicly available impact the housing market?” No one has a crystal ball, but we do have some useful thoughts.

First, the United States has lost over twenty-two million jobs since the start of the pandemic across various sectors impacted by restrictions and shutdowns, though housing has remained a bright spot. People still need a roof over their heads.

The strong possibility of a vaccine being made available by, or before, the spring (though once again it seems that the distribution is subject to political moves) beckons the possibility of a boom in employment, consumer spending, the economy, and likely a rise in prices. Rates move up when the economy is growing, or expected to grow, and vice versa. With the expectation of “normal” returning to the economy, upward pressure may be put on interest rates, including mortgage rates. Historically low rates have had an impact on the housing markets: despite the pandemic and tens of millions of Americans being out of work, home sales were up this year from July, August, and September 2019 by 8.7%, 10.1% and a massive 20.9%, respectively.

Those low rates have enabled more buying power for home seekers, which will begin to evaporate if rates rise. That, along with increasing forbearances, delinquencies foreclosures are some upcoming headwinds for the housing market.

That said, buyers who we have helped at First Community Mortgage know how wonderful it is to own their home. Ownership is still the American Dream, and we’re here to help.