Mortgage and real estate news this week: Effects of the housing boom, appliance shortages, rate forecast

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The big trend to watch these days is how insane the housing market has become. Stiff competition means high prices and fast-paced sales. Here’s how Bankrate broke it down this week.

1. Why is the market on fire?

That really is the question of the day. Especially early in the pandemic, many experts predicted people would stay put and real estate would see a slump. Instead, moving demand spiked in the last year, driven in part by changing homebuyer needs and low mortgage rates. Limited housing supply and sluggish construction are compounding those trends to push prices up.

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2. Why this boom may not lead to a bust

The last time the market was this frenzied, the housing bubble burst and America entered the Great Recession. Fortunately for everyone, we’re unlikely to follow that same path this time around. Home financing practices are quite different these days, there isn’t the same glut of houses there was in 2008, and price increases are pretty evenly distributed around the country. All of that points to a different outcome than the last real estate rush.

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3. Reliable agents are the key to competing

If you want to be the one to win over the keys to your dream home, finding the right agent to work with could be crucial to your mission. Since you’re likely to be up against other motivated buyers, it’s important to have someone on your side who understands the market in your area and can help you make the most competitive offer possible.

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4. The end of the eviction moratorium?

A federal judge ruled that the CDC’s eviction moratorium was illegal, setting the stage for a wave of tenant oustings in the near future. The decision will be appealed, and the moratorium is set to expire at the end of next month, but for renters who were affected by the coronavirus pandemic, an early end to those protections could mean difficulties ahead.

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5. The other home shortage

It’s not just lumber and homes themselves that are in limited supply at the moment. Crucial home-related goods like appliances and furniture are increasingly hard to come by as people have focused on sprucing up their abodes as a result of spending more time there in the past year. Homeowners may need to get creative to get their spaces fitted out to their liking.

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Bonus story

May mortgage rate forecast.  Find out where rates are headed.

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Written by
Zach Wichter
Mortgage reporter
Zach Wichter is a mortgage reporter at Bankrate. He previously worked on the Business desk at The New York Times where he won a Loeb Award for breaking news, and covered aviation for The Points Guy.