“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.
4 Tips To Make Your Strongest Offer on a Home
Your agent is your partner in navigating details. Trust them to lead you through negotiations and help you figure out your best plan.
Why Today’s Seller’s Market Is Good for Your Bottom Line
The market is still working in favor of sellers. If you house is ready and priced competitively, it should get a lot of attention.
What Mortgage Rate Do You Need To Move?
While mortgage rates are nearly impossible to forecast, the optimism from the experts should give you insight into what’s ahead.
Finding Your Perfect Home in a Fixer Upper
Your agent can also offer advice on which upgrades and renovations will set you up to get the greatest return on your investment.
The Benefits of Downsizing When You Retire
When you downsize your house, you often end up downsizing the bills that come with it, like energy costs, and maintenance requirements.
Why There Won’t Be a Recession That Tanks the Housing Market
The fundamentals of the economy, despite some hiccups, are doing pretty good.