Buying a home is a tremendous financial and personal decision. Purchasing and financing a home comes with a lot of questions: Should you buy or rent? Just how much can you afford? Are you going to qualify for a purchase mortgage? Bills.com helps you make that process a lot easier, providing you with valuable information and essential tools to help you make the best financial decision.
Can you afford to buy a home? Many households and especially millennials are pushing off their home purchase, due to financial concerns and changing lifestyles. Owning a home is often considered to be the American Dream. Did you know that the homeownership rate dropped from 69% in 2004 to just 62% in Quarter II 2016? However, since the beginning of 2017 homeownership rates are rising.
Will homeownership have a comeback in 2018? One of the main problems is the lack of supply and rising home prices. According to CoreLogic Chief Economist, Frank Nothaft:
Entry-level homes have been in particularly short supply. ...Thus, first-time buyers are facing acute affordability challenges in high-cost areas
Home prices peaked in 2007 and then plummeted. According to the national Case Shiller HPI, home prices are above pre-Great Recession levels. However, home prices and trends vary very m