Surging real estate activity amid low interest rates and favorable supply-demand dynamics have helped the U.S. title insurance segment remain resilient through recent COVID-19-driven turbulence, according to a new AM Best report.
A new Best’s Market Segment Report, titled, “Title Insurance Market Perseveres Amid Upheaval and Economic Uncertainty,” states that home sales and refinancing originations have gotten a boost from pent-up demand and low mortgage rates, as well as new demand from households looking for larger homes in less densely populated areas. At the same time, builders are experiencing a shortage of materials in the wake of the pandemic, which exacerbates the supply shortage. Low supply and high demand have increased the average price of homes sold, but buyers have benefited from additional purchasing power due to historically low mortgage rates. The low rates are generally a boon for the title insurance industry, according to the report, but uncertainty