Categories: Housing

Covid-19 delta variant may cause more volatility in housing

The rapid spread of the coronavirus delta has led to pandemic precautions returning. They’re impacting the hot housing market too, and experts say it likely will continue to serve as the industry’s wild card over the next few months.

The delta variant has led to volatile financial markets and some economic uncertainty. Recently, that has prompted mortgage rates to drop, opening another door for home buyers to snag record low mortgage rates. The 30-year fixed-rate mortgage dropped to a 2.77% average last week, nearing its all-time lows, according to Freddie Mac.

“It’s hard to say how it’s going to affect the housing market,” said Danielle Hale,’s chief economist, of the delta variant. “The next couple of months are going to be pretty key to see which gear the housing market [shifts] into.”

The fears of a more contagious version of the coronavirus could prompt some homeowners to delay selling their home, which would press on inventory levels just as they were starting to see some improvement. If buyer demand stays high and inventories fall again, that could then press on home prices even more and ignite more bidding wars for limited housing stock.

“You might see another rush [into the market] if restrictions tighten back up, if people feel there’s another possibility of another lockdown,” psychotherapist Jaime Saal, executive director of the Rochester Center for Behavioral Medicine in Michigan, told

Home prices continue to press higher from the still-ongoing homebuying rush sparked by the pandemic. The median existing-home price for all housing types was $363,300 in June, a 23.4% jump compared to a year earlier, according to the National Association of Realtors.

“I don’t think delta is going to dent the housing market unless it starts to elude our vaccinations to the point where we start self-quarantining and schools start shutting down and we go backward on reopening,” Mark Zandi, chief economist of Moody’s Analytics, told

Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at

Recent Posts

Print Advertising Does it Matter for Real Estate Agencies

Advertising is an essential component of a solid marketing strategy, and since marketing is about…

7 hours ago

Miami Real Estate Posts 10th-Highest Total Home Sales Month in History

Miami-Dade County real estate posted its 10th-highest total existing home sales month in history and…

16 hours ago

Mortgage applications rise amid strong demand for ARMs

Mortgage applications surprisingly jumped 8% last week compared to the previous seven day period, boosted…

17 hours ago

How Real Estate Agents can Automate Their Social Media Accounts

According to the National Association of Realtors, highlights indicate that existing and pending home sales have…

18 hours ago

Home affordability crumbles, causing demand to finally pull back

Ballooning mortgage costs, driven by skyrocketing prices and interest rates, have made mortgages less affordable…

20 hours ago

How to Make the Most of Local Real Estate Marketing

One of the main reasons why new real estate agents fail is because they are…

20 hours ago