The United States homeownership rate surged to 67.9 percent in the second quarter of 2020, reaching its highest level in 12 years, according to a National Association of Realtors® report based on U.S. Census data. While homeownership increased among all age groups, those under the age of 35 experienced the largest growth, increasing to 40.6 percent from 37.3 percent the prior quarter. The report credited low mortgage rates and the pandemic for more Americans pursuing homeownership.
Homeownership among Black Americans reached 47 percent, its highest level since 2008. The previous year, the Black American homeownership rate had reached its lowest level on record. Hispanic homeownership reached 51.4 percent, its highest level according to Census Bureau data from 1994.
“Usually, homeownership data moves at more of a glacier-slow pace, so to see a sudden move like this was quite surprising,” said NAR Chief Economist Lawrence Yun.
Shifting priorities as Americans face more time at home, as well as low mortgage rates, may be the reasons for the increase. In mid-July, the 30-year fixed-rate mortgage rate dropped below three percent for the first time in history. As mortgage rates lower, buyers are able to qualify for more and/or are able to have a lower monthly payment.
Second-quarter homeownership rates were comparable to those “last seen before the housing crisis and the widespread foreclosures that followed the 2008 foreclosure crisis.”
Ready to give homeownership a try? Contact Texas Urban Realty Broker and Owner Christine Chau to discuss your options.
Commenti