The high cost of living alone would be enough to keep many American households from being able to afford a home. When combined with credit card payments, student loan debt and stagnant wages, the obstacles on the road to homeownership become seemingly insurmountable.
In a new survey conducted by Bankrate, debt payments, including student loans are among the primary reasons people can’t afford a home. Further, 52 percent of Millennials state that their income is simply not enough. This sentiment was shared by Gen Xers (55 percent) and Baby Boomers (55 percent).
The survey also showed that just over half of all adults in the U.S. are unaware of the minimum down payment requires to buy a home. Low down payment programs, like an FHA loan, allow buyers to purchase a home with as list as 3.5 percent down.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.