Not according to a recent study done by the McArthur Foundation. According to their findings, many Americans believe we are still in the throes of a housing crisis (Crisis).
This coupled with a recent study done by the Urban Institute indicating that homeownership rates will continue to decline into 2030 (Declines), doesn’t bode well for mortgage lenders. As my grandfather would say, “Things, they no looka so good.”
Is it the housing market that’s the problem or are we just treating the symptoms? Is it a poor housing market that is causing a poor economy, or a poor economy causing the poor housing market? I love these reports and studies that project results 15 years into the future. Who will remember if their right or wrong?
There are issues today creating barriers to homeownership and these won’t be corrected through more low down payment programs or through lessening credit standards. Something needs to be done and someone needs to take notice.
Why don’t people have enough money to buy and maintain a home? Why do they have challenged credit profiles? Is it because of a poor housing market? I doubt it.
I believe it’s because of our current stagnant economy. The America Dream of homeownership is still alive and well and lenders, all of them, stand ready, willing and able to assist. All we need are qualified homes and qualified buyers.
It’s the economy, stupid! A campaign strategy coined by James Carville for Bill Clinton, still rings true today. People need jobs that pay adequate wages with security. Most Millennials are optimistic about homeownership, but they believe it will be much harder to buy a home than it was for past generations. This is because of their high, student debt and the challenges faced in obtaining gainful employment. They have the education and desire. But, are there jobs available?
It’s time for our elected leaders to sit up and take notice. For homeownership levels to remain strong, and the housing market to recover, we need a strong economy.
Somebody needs to step up and take the lead, not by imposing more regulations and restriction on lenders but in creating jobs, programs and opportunities to help more people buy and own their home.
Create the opportunity and the lending and investing community will do the rest. Just give them a chance.
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Based on these recent studies, as it now stands, things will get tougher for mortgage lenders, unless something gets done soon. It’s time for our leaders, and potential leaders, to take notice. It’s the economy, stupid. Let our voices be heard.