(Reuters) – Homebuilder D.R. Horton Inc saw a 65% jump in quarterly profits on Tuesday. The company was able to benefit from record-high property values and the fact that demand outstripped supply.

The demand for housing continues to be strong, as homeowners take advantage low mortgage rates until the government increases them next year.

Data from mortgage giant Freddie Mac showed that the average 30-year fixed mortgage rate was 3.14%, but fell to 3.09% in the week ended Nov. 4. Freddie Mac (OTC)

“While mortgage rates dropped after several weeks of rising, we anticipate future increases due to stronger economic data, and as the Federal Reserve pulls its stimulus back,” stated Sam Khater (chief economist at Freddie Mac).

For some, rising borrowing costs may make homeownership more expensive for first-time buyers.

In September 2019, the 30-year fixed rate mortgage rate was 3.97%, just before the pandemic.

The number of homes that were sold during the third quarter was up 8%, to 21,937 homes. This is compared to 20,248 units last year.

From $829 million or $2.24 per shares a year prior, the net income from the U.S.’s largest homebuilder increased to $1.33Billion or $3.7/share in the September 30 quarter.

The revenue grew to $8.11billion from $6.4billion a year prior.