(VitalNews.org) – A new survey done by the New York Federal Reserve has said that the dream of homeownership for renters is at an all-time low. The main reason for this is the high interest rates which make it hard to chase the dream of owning a home.
“Residential mobility” or the belief that renters will one day be able to own a home has dropped to just thirteen percent which is an all-time low. About seventy-five percent of people believe that obtaining a mortgage is very difficult.
Housing affordability has lowered a little bit with the medium price being just under $390,000 but this is still difficult for many renters looking to move to homeownership. It also showed that the average monthly payment was just above two thousand dollars. However, by historical standards, the fixed interest rate is at an all-time high, which stands as the main reason many are not pushing for homeownership.
Many respondents think that things will get higher before they get lower and they are expecting a rise in the mortgages. With this, the Fed has said that they are expecting to be able to drop rates by the end of the year, but respondents have said that they don’t have much faith in this.
Right now the rates are sitting at above seven percent for a thirty-year mortgage and the Feds have hinted at a drop in rates for months now. However, the Federal Open Market Committee said that there’s been a “lack of further progress” and therefore they are not ready to cut rates just yet.
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