Homeownership has always been the bedrock of the American dream, but rising prices is keeping many shut out of achieving this part of the dream. Financial services company Bankrate released a report last week which indicates that 79 percent of Americans believe owning a home is a “hallmark” achievement of the American dream. However, prices climbing beyond affordable levels is posing an increasingly greater challenge.
“Forty-one percent of Americans who don’t own a home say they cannot afford a down payment and closing costs, and one-third cite high home prices as a major obstacle,” said Bankrate’s report. “About 50 percent of respondents who don’t own a home say they can’t afford a home purchase because of their income.”
Home prices have risen at a far greater pace than wages for the last several years. Mortgage rates having fallen significantly over the past few months have helped counteract this. Conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.