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U.S. Mortgage rates jump above 7%
Mortgage rates rose above 7 percent for the first time this year. Dr. Michael Walden breaks down what that could mean for buyers.
Owning a home has long been considered the definition of the American dream, but the dream is becoming more and more out of reach.
A housing affordability crisis in the U.S. continues to escalate with no end in sight.
A new survey released by Bankrate found that, while an overwhelming majority of Americans agreed homeownership was the most common American Dream, a whopping 78% of aspiring homeowners said they can’t afford it.
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Of those surveyed, 78% said they consider homeownership a key component of the American dream.
Americans placed a higher value on it than on any other indicator of economic stability, including a comfortable retirement, a successful career or a college degree.
But the vast majority of aspiring homeowners in the U.S. say they also simply cannot afford it.
The most common challenges cited by respondents were insufficient income (56%), followed by home prices being too high (47%) and the inability to afford down payments and closing costs (42%).
"Owning a home is still the centerpiece of the American dream, but affordability is the main obstacle to making that a reality," says Greg McBride CFA, Bankrate’s chief financial analyst.
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Bankrate's survey found that nearly seven in 10 Americans said they were willing to take at least one step necessary to find affordable housing.
Forty-four percent of respondents said they could downsize their living space, while 34% said they would either move out of state or buy a fixer-upper.
As mortgage rates topped 7% last week for the first time this year, a separate report from Redfin found that the combination of steep mortgage rates and elevated home prices has pushed the median monthly housing payment to a new record of $2,775, an 11% increase from the same time last year.
This story was reported from Detroit. FOX Business contributed.