Despite increasingly low mortgage rates, the national home ownership rate, according to the U.S. Census Bureau, fell to the lowest level since 1994 in the last quarter of 2014. But why? Down payments are as low as 3% for government controlled Fannie Mae and Freddie Mac loans; and rates have hit as low as 3.63 for a 30 year fixed rate mortgage.
Experts blame the decline on increased home prices exceeding income growth rates. In the final quarter of 2014, the rate of home ownership fell from 64.3% in the previous quarter, to 63.9%.
However, according to experts, home ownership will soon be on the rise. Job growth last year was at its highest point since 1999. Pair this with the incredibly low interest rates, the government’s decrease in down payment requirements and the continuation of the buyers’ market, and home ownership should soon again be on the rise.