In 2021, mortgage lenders issued purchase loans of $ 1.61 trillion, up from $ 1.48 trillion in 2020, marking the highest mortgage loan numbers ever recorded.
The 2021 numbers beat an earlier record set in 2005 when $ 1.51 trillion in loans were granted The Wall Street Journal.
The record numbers reflect a glowing housing market. At the onset of the pandemic, people were drawn to the market with low interest rates and a desire for more home space – desires that will keep house prices skyrocketing, the Journal noted.
House prices rose 18.4 percent in October, a slight decrease from the 19.1 percent rise in home prices in September.
But with a strong job market, Americans who received a raise or saved up during the pandemic may be ready to get into the housing market despite rising costs.
The Bureau of Labor Statistics reported that wages for all private sector workers rose 4.6 percent year over year in the third quarter, the Journal found.
“All of that extra income goes somewhere, and much of it went into housing,” Taylor Marr, assistant chief economist at Redfin Corp., a real estate agent, told the newspaper.