Will homeownership grow in the new year?
Posted on Tuesday, December 27, 2016 at 4:10:03 PM
Homeownership has been a big question mark in the United States for several years, as so many trends have negatively impacted the number of homeowners throughout the past decade. This begs the question: How will homeownership play out in 2017?
The first consideration here is the average mortgage interest rates prospective buyers are facing. After a year of historic lows, the Zillow Mortgage Rate Ticker found that the average rate on a 30-year fixed mortgage hit 4.1 percent in the third week of December, which could discourage individuals who were considering purchasing some real estate. However, homeownership continued falling in 2016 despite some of the most competitive interest rates in history.
The second, and perhaps most important consideration is related to the younger generations. CNBC reported that homeownership was just below 63 percent in July, and that millennials are believed to be the ones bringing that figure down since they do not appear to be commonly interested in purchasing a house.
However, as the economy strengthens and millennials begin to mature a bit, there is a chance that homeownership could begin to rebound in 2017.
Happy New Year!