Home prices gain most on record with low rates driving demand

[WASHINGTON] Home prices surged the most on the record in the third quarter, according to a report Tuesday from the Federal Housing Finance Agency.

With record low mortgage rates fueling demand for housing, prices jumped 3.1 per cent compared to the prior quarter. That was the biggest gain on record, FHFA said in a statement.

Compared to 2019, prices were up 7.8 per cent in the three months through September, the biggest jump since 2006.

The housing market has been booming during the pandemic in the US, with cheaper borrowing costs and the desire for more space to spread out fueling a surge in purchases.

BLOOMBERG