“The combination of very low mortgage rates, a strong economy and more positive financial market sentiment all point to home purchase demand continuing to rise over the next few months.”
Regardless of the lack of inventory on the market, the U.S. homeownership rate has climbed to a 6-year high. The United States Census Bureau reported that it increased to 65.1% in the fourth quarter of 2019, representing the highest level in the past six years. See the graph below:
This increase does not come as a surprise. According to realtor.com,
“The largest cohort of the millennial generation turns 30-years-old in 2020 and they are hitting the housing market in full force. At the end of the fourth quarter of 2019, millennials made up the largest generational segment of homebuyers, growing their share of home purchase mortgages to 48 percent.”
With so many Millennials entering a homebuying phase of life and getting into the market, the Millennial Report also explains,
“Homeownership is an even bigger goal for younger generations. Of those with savings, 41 percent of Gen Z and 40 percent of younger millennials are saving to buy a home.”
Today’s low interest rates are providing a break to new homeowners too, regardless of generation, making homeownership more desirable and achievable at the same time. Freddie Mac explains,
“The combination of very low mortgage rates, a strong economy and more positive financial market sentiment all point to home purchase demand continuing to rise over the next few months.”
The increase in homeownership rate was also represented by race and ethnicity of the householders. HousingWire explains,
“The homeownership rate for black Americans in 2019’s fourth quarter rose to 44%, a seven-year high, increasing from the record low it reached in 2019’s second quarter. The rate for Hispanic Americans was 48.1%, a two-year high, the Census data showed…The rate for white Americans was 73.7%, an eight-year high.”
See the graph below:
Bottom Line
If you’re considering buying a home this year, let’s get together to set a plan that will help you get one step closer to achieving your dream.
To view original article, visit Keeping Current Matters.
What You Can Do When Mortgage Rates Are a Moving Target
You can get the best rate possible in today’s market by controlling your credit score, loan type, and loan term..
Are You Saving Up to Buy a Home? Your Tax Refund Can Help
If you’re getting a tax refund this year, you can use it to help you pay for some of the upfront costs that come with buying a home.
Don’t Miss This Prime Spring Window To Sell Your House
By targeting late spring, sellers can get their home listed when the most shoppers are looking.
4 Ways to Make an Offer That Stands Out This Spring
If you’re serious about landing a home you’ll love, you need a smart strategy that includes a working with a great agent.
Pre-Approval Isn’t Commitment – It’s Clarity
Pre-approval isn’t about jumping the gun or rushing your timeline. It’s about making sure you’re ready when it’s go-time.
Why You Don’t Want To Skip Your Home Inspection
Skipping a home inspection is a risk that could cost you a lot more than just time.
