Americans borrowed more than ever to buy homes in 2021. The Mortgage Bankers Association estimates that mortgage lenders issued $1.61 trillion in purchase loans in 2021, the Wall Street Journal reported. That is up slightly from $1.48 trillion in 2020 and above the previous record of $1.51 trillion in 2005. The mortgage boom reflects a thriving housing market and the corresponding run-up in prices over the past year. Many of the forces that pushed Americans into the housing market in the early months of the pandemic — low interest rates and a desire for bigger homes — continue to drive up prices and mortgage balances. What’s more, many Americans got raises and built up savings during the pandemic, giving them the means to buy. The rate of home-price growth has slowed in recent months but remains near record levels. Home prices rose 19.1% in the year that ended in October. Sales of existing homes in 2021 were expected to reach their highest level since 2006.
