Posts Tagged ‘Home Ownership’

Millennials Over-Extended and Frustrated with Home-Buying Process

Posted on October 04, 2017 by Laura Lam

Millennials poured some $514 billion into the U.S. housing market over the last year as the largest generation of home buyers, Zillow reported.  But new survey data shows their home-ownership aspirations are stymied by affordability issues, frustration with the buying and selling process, and a cutthroat housing market. More than half of young buyers (53%) make multiple offers to buy their first home, and only 2 in 5 millennials (39%) are able to make the recommended 20% or more down payment.  The results of the Zillow Group Report on Consumer Housing Trends 2017 show how the nation’s highly competitive housing…

Student Loan Debt Delays Homeownership by 7 Years

Posted on September 22, 2017 by Laura Lam

An overwhelming majority of Millennials with student debt do not own a home, and believe this debt is the cause for the delay.  These are the findings of the 2017 Student Loan Debt and Housing Report from the National Association of Realtors and nonprofit American Student Assistance.  The study revealed the typical delay is about 7 years. But home buying isn’t the only factor affected by student debt. The study showed student debt is holding Millennials back from financial decisions and personal milestones such as saving for retirement, changing careers, continuing their education, marrying and having children. “The tens of thousands of dollars…

Young Women Have Better Credit Scores Than Men

Posted on August 21, 2017 by Laura Lam

A recent Lending Tree survey found points of major disparity in the responses from men and women regarding debt and personal financial health.  The survey’s findings suggest that millennial women are trailing their male counterparts when it comes to income, home ownership and financial satisfaction despite having higher credit scores and responsible financial priorities. According to the survey, women find themselves struggling to pay off higher levels of debt compared to men, much of which comes from student loans. The average total debt for millennial men is $53,017, which is almost 30% lower than the average total debt for millennial…

Renters Finally Turning Toward Homeownership

Posted on May 04, 2017 by Laura Lam

The homeownership rate has been on the decline ever since the peak of the housing bubble a decade ago.  However, last month, the Census Department said American home ownership was 63.6% in the first quarter, down a bit from the fourth quarter of 2016, but up from a year ago, which is economists’ preferred way to gauge the data. According to Trulia Chief Economist Ralph McLaughlin, the number of owner-occupied households rose more quickly than renter households for the first time since 2006. The number of new owner households was up 850,000, compared to a 365,000 increase in the number of…

Education Reduces Foreclosures by 42%

Posted on September 13, 2016 by Laura Lam

Research by Vanderbilt University’s Peabody College shows that among participants in a down-payment assistance program offered by the Tennessee Housing Development Authority (THDA), the odds of foreclosure were 42% lower for those who completed a homebuyer education (HBE) class compared to those who did not.  The course covers the advantages and disadvantages of home ownership, the difference between home equity loans and home equity lines of credit, and the importance of creating and sticking to a family budget. The Vanderbilt study’s author, doctoral student Scott Brown, explored an opportunity to compare home-buyers in 2002 who were identical in every way…

Student Debt Impacts Home Ownership

Posted on December 10, 2015 by Saldutti

A new report based on research from the Harvard Joint Center for Housing Studies indicates student loans has a potentially strong impact on consumers seeking to move from renting to buying a home. It also could delay their ability to build savings for a mortgage down payment. Young borrowers who are facing debt but didn’t finish their degree are looking at growing default and delinquency rates and challenges finding well-paying jobs, according to Irene Lew, a research assistant at the Harvard Joint Center for Housing Studies.  In Lew’s report, “Student Loan Debt and the Housing Decisions of Young Households,” she reviews the…

Can Churches and Nonprofits Boost Homeownership?

Posted on November 20, 2015 by Saldutti

As part of a broader effort to attract more potential borrowers to its 3% down payment home loan product, the government-sponsored Freddie Mac is reaching out to faith-based organizations to help preach the gospel of homeownership – particularly to low and moderate-income families who may think that owning a home is out of their reach. “When we think about communities that we’re trying to access and the distrust of homeownership as a whole, it’s very important that the message of this opportunity be channeled through trusted advisers,” said Danny Gardner, Freddie’s vice president of affordable lending and access to credit….

More Renters Considering Home Ownership

Posted on November 19, 2015 by Saldutti

An increasing number of renters are considering whether to purchase a home, according to a new TD Bank survey.  About 50% of renters are likely to purchase a home in the next 2 years, TD Bank said. The reason is the rising cost of rents, according to Scott Haymore, head of pricing and secondary markets. “With an improving job market and economy, renters are gaining more confidence in the housing market and starting to explore home ownership as a feasible option,” Haymore said.  TD Bank’s survey was conducted between Sept. 23 and Sept. 30 and queried 1,046 consumers. The breaking…

Americans Borrowing More, Delinquencies Climb

Posted on February 19, 2015 by Saldutti

Household debt – including mortgages, credit cards, auto loans and student loans – rose $117 billion from October to December to $11.8 trillion, according to the Federal Reserve Bank of New York.  But more Americans fell behind on auto and student loans. The share of auto-loan debt 90 or more days overdue jumped to 3.5% last quarter, from 3.1%. A similar rate for student loans rose to 11.3% from 11.1%. While Americans have made considerable progress fixing their post-recession finances and are now taking on new loans judiciously, some are struggling with auto and student loans, whose rapid growth has…

What Does it Cost to Live the American Dream?

Posted on July 10, 2014 by Saldutti

No idea is more central to Americans’ outlook than the American dream – the belief that with hard work and the freedom to pursue your destiny you can achieve success and provide better opportunities for your children. Historian John Truslow Adams, who coined the term, called it “the greatest contribution we have made to the thought and welfare of the world.” It has inspired millions of people from every corner of the globe to come here in search of liberty and opportunity. But the financial crisis, housing bust, and Great Recession have caused more of us to worry that the…