Although home prices and mortgages may increase, the demand for housing will continue to increase, according to Ara Hovnanian, the chief executive of Hovnanian Enterprises Inc. Bloomberg staffer David M. Levitt takes a look at a Hovnanian's recent interview on Bloomberg Television, where he spoke on the housing market and it's recovery/boom.
The low mortgage rates allow everyone to buy bigger homes than they would be able to buy normally and even that even more people will still buy because they need shelter, just smaller. This is seen in his belief that there is more pent-up demand that has yet to be tapped into:
“Actually and amazingly, there were more homes sold in 1981 when mortgage rates were 17 percent,” Ara Hovnanian said in an interview on Bloomberg Television. “The reality is there’s a lot of pent-up demand, demographics are building, the population is growing and they need shelter.”