OWNERSHIP & PRICES UP
Homeownership is increasing as the year goes on according to the U.S. Census Bureau. Homeownership rose .07% from Q2 to Q3, bringing the overall nationwide rate to 64.8%. Additionally, CoreLogic reports that home prices increased 3.5% year-over-year in September. In its latest Home Price Insights Report, CoreLogic forecasts that annual U.S. home prices will rise 5.6% by September 2020.
Rates finished the month at the highest level since July according to Freddie Mac's Primary Mortgage Market Survey for the week ending October 31. Rates for the 30-year fixed rate mortgage rose for the third consecutive week.
Homeowners are hanging on according to Seattle-based brokerage Redfin. The analysis of homeownership tenure in 55 U.S. metro areas found the average stay in 2019 is 13 years, up from eight years in 2010.
The U.S. housing market will see a massive influx of first-time homebuyers between 2020 and 2022 according to TransUnion. The credit reporting agency predicts that 8.13 to 9.2 million first-time buyers will enter the market during that time, the highest prediction for a three-year date range in over a decade. TransUnion Senior Vice President Joe Mellman said, "…we are optimistic that first-time homebuyers will contribute more to home ownership than at any time since the start of the Great Recession.”
Sources: U.S. Census Bureau, CoreLogic, Freddie Mac, Redfin, TransUnionShare:
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