Rising Interest Rates
As we see interest rates increase daily, adding additional stress for millennials and all members of the X and Y generation to purchase a home. According to a recent analysis from Fitch Ratings this obstacle has affected the younger generation significantly.
The impact has cut down the millennials mortgage capacity by 9% since the beginning of October. This is an incredibly startling number. If rates continue to rise over a short period, this could be added to the list of factors that deter these first time home-buyers. Also affecting their ability to afford home-ownership not only in the Charleston area, but nationally. Other factors on this list are high student loan payments, rising rents and slow and low wage growth.
We have seen these effects impact the rate of home-ownership of those under the age of 35. Declining in 2016 to 35% from 2000 where the rate of homeowners was 41%. The Fitch Ratings stated “Historically low rates have been one of the few factors that have helped young adults to buy homes. The drop in mortgage capacity could therefore leave more millennials out of what has historically been one of the most important wealth-creation mechanisms, and could contribute to long-term shifts in savings and consumption.”
Selecting a knowledgeable, trustworthy lender is even more vital than in the past. That is why you should contact Zach Larichiuta and his Lucy Lending Team today, to help advise, guide and assist with all your lending needs. He will take the time to walk you through the different avenues for home-ownership and loan programs that may work for you.
To discuss your specific financial situation click here to contact us online, or call us at 843.469.9010