According to a study done by the National Association of Realtors (NAR), 75% of non-homeowners and 90% of current homeowners said homeownership was an essential aspect to the “American Dream”. The survey was conducted across twelve months of last year, and consisted of 64% homeowners, 27% renters, and 9% non-homeowners living with family members without paying rent. Affordability in housing was the main reason holding back potential homeowners. In the 4th quarter of 2018, however, only 43% of non-owners stated they could not purchase a home due to being in a position to purchase, which is a 6% drop from the previous quarter, in which 49% answered the same.
On top of the NAR report, data from the Mortgage Bankers Association (MBA) from the week of January 11th, purchase mortgage applications increased for the sixth time in the last eight weeks. That index was up 9% on a seasonally-adjusted basis, representing the highest level since April 2010. In addition, the Refinance Index increased 19% from its previous week to its highest level since March 2018. These numbers are strongly correlated to interest rates pulling back from recent highs, as homeowners are looking to capitalize. Mike Frantantoni, MBA Senior Vice President and Chief Economist, stated, “The spring homebuying season is almost upon us, and if rates stay lower, inventory continues to grow, and the job market maintains its strength, we do expect to see a solid spring market.”
Sources:
http://bit.ly/2RxWOPW
http://bit.ly/2RRy18N
By: Jon Iacono