Aspiring first-time homeowners are sailing into fierce macroeconomic headwinds as prices and mortgage rates rise, while higher rents make it harder to save for a down payment.Homeownership is a foundation for middle-class Americans to build long-term wealth. If people can't afford homes, that American dream becomes even less attainable.
Plus, homes provide a sense of stability. Assuming you've got a fixed-rate mortgage, there's no equivalent of the landlord hiking your rent every year. — "the largest monthly increase since April 1986." They're up a staggering 5.8% year-over-year, too.Rising rates: As the Federal Reserve raises interest rates to battle inflation, mortgage rates are rising in kind. This week'sfor an average 30-year fixed rate mortgage is 5.5%, compared to around 3% at the end of last year.
For a $350,000 loan, that's a difference of $1,987 in monthly payments vs. $1,476 — or $6,132 annually. Ouch. (And as Axios' Emily Peck notes, other sources
⬆️ greed ⬆️ tax breaks on investment properties ⬆️ no limits on private home ownership including air bnb / second homes / rentals ⬆️ no limits on company home ownership