The Sioux City Journal tells MHProNews that a recent survey by Freddie Mac revealed that 91 percent of renters believe homeownership is something of which to be proud. In addition, younger renters are making plans to buy homes in the near future. In fact, nearly half of renters in the 25-to-34 age bracket, and nearly 60 percent of renters ages 35 to 44, indicate that they plan to buy a home in the next three years.
These would-be buyers recognize the many benefits to home ownership, including the fact that home ownership is a primary source of net worth for many Americans, and is an important step in accumulating personal financial assets over the long term.
In fact, 90 percent of the survey respondents said that being able to pass their home on to their children is one of the top three benefits of homeownership. Although property values have declined in many markets, Americans have more than $10.8 trillion of equity in their homes, and for most families, home equity represents the largest share of net worth.
Qualifying for a mortgage and saving up for a down payment remain primary obstacles to homeownership. To help address these concerns, Fannie Mae and Freddie Mac – through the Federal Housing Administration (FHA) – recently announced new low-down payment mortgage programs geared primarily toward the first-time home buyer market.
When choosing a home, Millennials have a somewhat different set of concerns Recent analysis by the National Association of Home Builders reveals Millennial home buyers – those in the 18-to-33 age bracket – are more likely to let financial reasons influence their house choice, while older generations consider the right size most often. Also, the homes Millennials buy are smaller, older and less expensive than homes purchased by older generations.
That’s not surprising, since Millennials also are more likely than older generations to finance home purchases through current income rather than accumulated wealth, according to the NAHB analysis of the 2013 American Housing Survey.
So, while Millennials may be taking a little longer than previous generations to reach some of these traditional milestones, their goal of building their own American Dream remains strong. ##
(Photo Credit: Keeping Current Matters)
Article submitted by Sandra Lane to – Daily Business News – MHProNews.
