The national homeownership rate saw a slight increase during the third quarter to 63.5 percent. This follows the 51-year low seen in the second quarter of this year when the rate fell to 62.9 percent. These latest figures, which were released last week by the U.S. Census Bureau, show that more households may be shifting from renters to owners.
Of the 1.1 million household formations last quarter, more than half of them were owners, a key factor in analyzing where the housing market stands in post-recession recovery. The homeownership rate peaked at 69.1 percent in 2005 but saw significant declines to the economic collapse. Rising prices have hindered a speedier recovery.
Millennials rejoined the housing market, with individuals under 35 accounting for 35.2 percent of homeowners in the third quarter, the highest rate seen all year.
Meanwhile, mortgage rates remain historically low with conforming no-point 30-year fixed rates are averaging 3.50 percent while the 15-year rate is near 2.75 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.