Families with lower-median household income are overcoming barriers related to borrowing costs and rising home prices and are finding ways to become a homeowner, according to Freddie MacThe latest economic, housing and mortgage outlook from.
Thank you for reading this post, don't forget to subscribe!The below-median family income homeownership rate increased from 48% to 53% since 2016, Freddie Mac said, citing data census BureauHousing Vacancy Survey of. In turn, lower-median family income homeownership rates contributed to the overall increase in the overall homeownership rate during that time.
The homeownership rate for owner-occupier households with higher-than-median family income grew at a much slower rate than the lower-median family income homeownership rate.
According to Census Bureau data, since the second quarter of 2016, the below-median family income homeownership rate has increased by 5.4 percent, while the above-median family income homeownership rate has increased by only 0.8 percent.
The home ownership rate gap between households with above-median and below-median family income has also narrowed over the years, and has generally been trending downward over the past decade. According to Freddie Mac, this is due to the increase in the lower-median family income homeownership rate, which continues to drive the above-median family income homeownership rate growth.
The agency said, “Households with lower-median household income are overcoming barriers and finding ways to become homeowners even in less affordable environments – an encouraging sign as we celebrate National Homeownership Month. ”
In terms of house prices, government-sponsored enterprises (GSEs) are expected to decline by 2.9% in the 12 months through the first quarter of next year, and an additional decline of 1.3% in the subsequent 12 months.
The GSE said mortgage origination volumes are likely to pick up in the second quarter of this year due to seasonality in the housing market, but origination volumes for 2023 will almost certainly be below 2022 levels.
Purchase origins are forecast to remain flat before home sales stabilize later this year, according to Freddie Mac. The GSE noted that it would take up to 2024 for buy origins to resume modest growth.
Freddie Mac’s estimates are in line with recent mortgage bankers association(MBA) forecasts.
According to MBA, the median price of existing homes is expected to decrease by 4.2%, falling from $384,000 in 2022 to $367,800 in 2023. In 2024, MBA expects the median price of existing homes to drop 2.1% to $375,400.
Purchase originations are projected by the MBA to increase in loan volume from 3.2 million in 2023 to 3.9 million in 2024.
