Why is the United States Homeownership Rate Stuck at 1965 Levels?

Is Your First Home Now Within Your Grasp?

Existing Home Sales Point Toward a Good Time to Sell

  • Existing Home Sales dropped 1.7% from May to a seasonally adjusted annual rate of 5.27 million in June.
  • Low inventory levels are still a factor in the market. The current supply of homes for sale is at 4.4 months, which is less than the optimal 6-month supply.
  • Median home prices were up 4.3% from June 2018, hitting $285,700. This marked the 88thconsecutive month with year-over-year price gains.

How Long To Save Your Down Payment

Saving for a down payment is often the biggest hurdle for a first-time homebuyer. Depending on where you live, median income, median rents, and home prices all vary. So, we set out to find out how long it would take to save for a down payment in each state.

Using data from HUDCensus and Apartment List, we determined how long it would take, nationwide, for a first-time buyer to save enough money for a down payment on their dream home. There is a long-standing ‘rule’ that a household should not pay more than 28% of their income on their monthly housing expense.

By determining the percentage of income spent renting in each state, and the amount needed for a 10% down payment, we were able to establish how long (in years) it would take for an average resident to save enough money to buy a home of their own.

According to the data, residents in Kansas can save for a down payment the quickest, doing so in just over 1 year (1.12). Below is a map that was created using the data for each state:

What if you only needed to save 3%?

What if you were able to take advantage of one of Freddie Mac’s or Fannie Mae’s 3%-down programs? Suddenly, saving for a down payment no longer takes 2 to 5 years, but becomes possible in less than a year in most states, as shown on the map below.

Whether you have just begun to save for a down payment or have been saving for years, you may be closer to your dream home than you think! I can introduce you to a mortgage professional who can help you evaluate your ability to buy today.

What You Need to Know About the Mortgage Process

  • Many buyers are purchasing a home with a down payment as little as 3%.
  • You may already qualify for a loan, even if you don’t have perfect credit.
  • Take advantage of the knowledge of your local professionals who are there to help you determine how much you can afford.

The Mortgage Process [INFOGRAPHIC]

3 Tips For Making Your Dream Of Owning A Home A Reality

What Would You Sacrifice to Save For Your Next Home?

What Is Dodd-Frank and Why Does Trump Want to Repeal It?

Trump campaigned on deregulating Wall Street, saying that regulations are “killing our country and our jobs.” He wants to repeal Dodd-Frank, the 2010 law that tried to reign in the banks after the financial crisis. What exactly does Dodd-Frank do? And is the president right that it threatens the American economy?

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