Lunch & Learn: Are appraisals the next big opportunity in mortgage fulfillment?

This Lunch & Learn for mortgage lenders will explore the evolution of the appraisal process as well as opportunities for innovation.

HousingWire Annual Virtual Summit

Sessions from HousingWire Annual 2021 are going to be virtually streamed on October 25. Register now for FREE to tune into what housing industry leaders had to say this year!

How Freddie Mac is addressing affordable housing challenges

Freddie Mac is focused on addressing limited access to credit, housing inequalities, creation and preservation of affordable housing supply and advancement of homeownership education.

How to increase minority homeownership?

Today’s HousingWire Daily features a roundtable discussion from HousingWire’s Lunch & Learn series that looks at “Unpacking the lender’s vital role in increasing minority homeownership.”

MortgageReal Estate

NAR: American dream of homeownership is still alive

But affordability remains a major deterrence

Although tightening affordability continues to be a deterrence to homeownership, data suggests Americans still strongly consider it to be a part of the American dream, according to the National Association of Realtors.

In fact, according to NAR’s Aspiring Home Buyers Profile, approximately 75% of non-homeowners and 90% of current homeowners said homeownership was essential to the American Dream.

NAR calculated the housing expectations and sentiments of non-homeowners by utilizing 2018 quarterly consumer insights from its Housing Opportunities and Market Experience survey.

Notably, NAR included both renters and those living with a family member in its results.

According to NAR, when non-homeowners were asked for the main reason why they currently did not own a home, most respondents cited mortgage affordability.

NAR Chief Economist Lawrence Yun said unaffordable housing has caused a number of potential buyers to hold off on purchasing a new home.

NAR’s data indicates that in Q4 of 2018, 43% of non-owners said they did not own a home because they were not in a position to purchase. This is a 6% drop from Q3, when 49% of non-homeowners answered the same.

The organization also notes that in Q4, 33% of non-homeowners said they do not own because current life circumstances were not suitable for homeownership, while 16% said they required the flexibility of renting.

“The lack of affordable and moderately priced homes has forced non-homeowners to delay achieving that part of the American Dream,” Yun continued. “However, as the survey confirms, significant lifestyle changes like marriage or starting a family often spur non-owners to pursue homeownership.”

NAR discovered that in each quarter of 2018, 28% to 31% of non-owners said improvement to their financial situation would be the main motivator for future homeownership.

Additionally, 26-30% of non-owners said a change in lifestyle, like getting married, starting a family or retiring, would be the primary reason they would make a future home purchase.

You can read the full results of NAR’s data here.

NOTE: This data was calculated on the behalf of NAR by research firm TechnoMetrica Market Intelligence. The survey represents a total of 8,140 household responses.

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