Homeownership remains a significant aspect of the American dream, yet current market conditions reveal a troubling reality. While two-thirds of adults in the US own homes, the rates of ownership skew heavily towards older generations, primarily due to rising property values and increasing mortgage rates. Home sales have reached their lowest since 1995, greatly impacting potential first-time buyers. High mortgage rates near 7% discourage movement among those with lower rates, while fewer new homes are being constructed, exacerbating the issue for aspiring homeowners.
According to the National Realtors Association, home sales last year fell to their lowest level since 1995, impacting opportunities for new homeowners.
Mortgage rates recently topped 7%, shifting the monthly payment on a $450,000 mortgage from $1,925 to $2,923, making homeownership less achievable.
The combination of high mortgage rates and falling home sales makes it extraordinarily difficult for young adults to achieve homeownership.
Fewer new homes are being built as contractors hesitate to invest when high mortgage rates deter potential buyers.
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