MORTGAGE BLOG

Rising Childcare Costs Hurt Homeownership

Posted On January 14, 2020

One of the most commonly reported barriers to buying a first home is saving for the down payment.  Student loan debt is a huge factor in preventing would-be first-time home buyers from saving, and most recently, rising childcare costs may also be a cause.  Freddie Mac issued a recent report on how the rising cost of childcare is hurting renters and delaying home purchase.  The report found the cost of housing has increased 14% in 25 years, while the cost of childcare has increased 49% over the same period.  

Are Parents Hurting Homeownership?

Posted On May 28, 2019

Millennials may have an even harder time shaking the “parents’ basement dwellers” moniker after recent data from an Urban Institute study.  While a large share of recent college graduates move back into their parents’ homes with the intention of saving money in a no-or-low-rent environment, they may actually be hurting their chances at homeownership.    From the study, young adults who live with their parents between the ages of 25 and 34 are significantly less likely to be homeowners ten years later.

Do 21 Million Under 40 Renters Know Their Homeownership Potential?

Posted On October 10, 2018

Saving for a down payment is a considerable barrier to homeownership. With rising home prices and interest rates and tight lending standards, the path to homeownership has become more challenging, especially for low-to-median-income borrowers and potential first-time homebuyers.

Millennials Delay Marriage, Not Homeownership

Posted On September 18, 2018

Millennials may be delaying marriage but not homeownership, according to a recent study.  In 1985, 75% of first-time home buyers were married couples.  Today, married couples make up 57% of first-time home buyers.  The National Association of Realtors’ managing director of survey research commented, “it’s absolutely a trend.  People feel fine purchasing a home without a ring.”

Don’t Let Debt Defer Homeownership

Posted On June 14, 2018

During the mortgage loan application process, lenders review debt-to-income ratio to ensure that the applicant will be in a good position to repay the loan.  Unfortunately, many Americans, especially Millennial-aged first-time home buyers, believe they are too debt burdened to buy a home.  With record-high student debt, the national median age of first-time home buyers in 2017 was 32-years-old. 

How Student Loan Debt Prevents Homeownership

Posted On April 10, 2018

One of the most pervasive issues hurting first-time home buyers today is student debt.  The substantial cost of higher-education pushes many young Americans to take out high-balance loans and graduate with debt in the range of tens of thousands of dollars, or higher, depending on the degree.  Over 45 million Americans carry student debt, the average borrower owes more than $30,000 and one-fifth of borrowers owe more than $100,000.  Student loan debt is hurting homeownership in a number of ways, because it lessens the borrower’s ability to save for a down payment and closing costs, it increases the borrower’s debt-to-income ratio, and in some cases negatively impacts the borrower’s credit score.

Homeownership Rate Rises in 2017

Posted On February 08, 2018

Last week, the US Census Bureau reported the total homeownership rate in Q4 2017 improved to 64.2% from 63.9% in Q3.  Even after a year of gradual rate hikes and sustained home price appreciation, more American households are transitioning from renting to homeownership. 

Gen X Boosts Homeownership Rate Recovery

Posted On December 07, 2017

The national homeownership rate has struggled to regain traction since the pre-recession housing peak.  Last month, a report from the Census Bureau showed the United States homeownership rate improved to 63.9% in the third quarter, up slightly from second quarter’s 63.7% and significantly from last year’s 63.5%.  One of the notable finds from the report was the resurgence in Generation X homeowners, the generation most impacted by the housing crisis.

Generation Z Renters Gearing Up for Homeownership

Posted On October 12, 2017

Generation Z (Gen Z) renters include people born between the late 1990s or 2000s are more interested in homeownership than the preceding generation, the Millennials, according to a new survey.  Zillow reports 57% of Gen Z renters are confident they will own a home, compared to 55% of Millennials.  The discussion of Millennials delaying homeownership has been prevalent throughout the housing industry.  Now with a new demographic of young home buyers vying for starter homes, the housing market might just get more competitive. 

Watch Out: Hidden Costs of Homeownership

Posted On August 10, 2017

Traditionally, owning a home is one of the ways Americans can build wealth and financial security.  Homeownership does not come without a cost, as Zillow researchers pointed out in a recent article on the hidden costs of homeownership.  According to budgeting experts from Zillow, Thumbtack, and UtilityScore the average American homeowner incurs $9,080 in expenses each year, broken down as unavoidable costs and maintenance expenses.

Homeownership Rate on the Rise

Posted On August 03, 2017

Household formation is strong so far, this year, after the second consecutive quarter of gains.  The US Census Bureau reported the homeownership rate improved by 0.1% quarter-over-quarter and is up 0.8% year-over-year, hitting a three-year high.  With rates still historically low, more first-time home buyers are entering the market with confidence and boosting the homeownership rate.

Secretary Carson Advocates Responsible Homeownership Goals

Posted On July 06, 2017

US Department of Housing and Urban Development (HUD) Secretary Ben Carson hosted a questions and answer session last week on Facebook Live.  In his discussion, he addressed homeownership as a core component of the American dream and avoiding a repeat of the Financial Crisis of 2008. 

Survey: Down Payment Biggest Obstacle to Homeownership

Posted On April 18, 2017

A recent Zillow survey reveals nearly 70% of renters report saving for a down payment as the largest barrier to homeownership.  With rents reaching record highs, the average rent costs nearly 50% of the median income in many cities.  Even with the delay in buying a home, most renters cite homeownership as a goal.  63% of survey respondents are confident they will someday own a home, 25% believe it will happen in the next three-to-five years.

Download Case Study: Building Wealth Through Homeownership

Posted On January 05, 2017

Home values, like other economic measures, are cyclical.  It is widely accepted that buying a home is an investment in the future.  Even in periods of recession, homes can increase in value.  The government puts forth affordability initiatives to close the homeownership gap, emphasizing its fundamental role in providing financial security.  When construction slows and available inventory lessens, sellers of existing homes have an advantage as their homes’ value goes up.