The average monthly new-mortgage payment is now 52% higher than the average apartment rent, per CBRE.
The average rent for an apartment is reaching unprecedented levels due to the continuous surge in housing prices and interest rates. According to data from real estate firm CBRE, this marks an all-time high since at least 1996.
Previously, the cost of a monthly mortgage was comparable to or even less than the monthly rent on an apartment, as indicated by a CBRE report from April. This trend was observed from 1996 to mid-2003. However, factors such as high-interest rates, limited housing supply, and rapidly increasing home prices have elevated the cost of home ownership, making it more challenging for many first-time buyers to enter the market.
The 30-year fixed mortgage rate reached 8% on Wednesday, the first time in nearly two decades. Despite the high-interest rates, experts suggest that it may not necessarily be a bad time to buy a home. Waiting for rates to decrease could lead to increased competition in the market, according to Daryl Fairweather, Redfin's chief economist. In general, experts emphasize that there is never a "perfect time" to purchase a house.
American families increasingly believe the American dream is out of reach, with 42% believing it is no longer possible, per FOX.
Read more: https://www.foxbusiness.com/economy/american-families-increasingly-believe-american-dream-out-reach
The most recent State of the American Family survey, unveiled by MassMutual this month, reveals that over 42% of Americans feel the American dream is unattainable. This marks a 9-point increase since 2018 and mirrors sentiments from 2013 during the sluggish recovery from the financial crisis. Amanda Wallace, head of insurance operations for MassMutual, noted the challenges individuals face in balancing daily expenses with short- and long-term financial goals. Factors such as high student loan debt, the absence of an emergency fund, and difficulty covering day-to-day expenses contribute to these concerns.
The survey emphasizes that only 44% of Americans with children are confident they won't live paycheck to paycheck, and 37% believe they can retire at their target age. Financial security for families now tops the list in defining the American dream, shifting from homeownership a decade ago. However, around 70% of Americans with children remain optimistic about achieving homeownership despite changing priorities. Wallace suggests that the historical prevalence of homeownership could be fueling this optimism, while pessimism is influenced by living paycheck to paycheck and the burden of student and credit card debt.
https://unusualwhales.com/news/american-families-increasingly-believe-the-american-dream-is-out-of-reach-with-42-believing-it-is-no-longer-possible
