Americans are still holding onto the dream of homeownership, with 67% of respondents in a recent survey stating that owning a home is one of their most coveted goals. However, the majority are waiting for mortgage rates to drop before taking the plunge into the housing market. According to the BMO Financial survey, 71% of Americans are waiting on rate cuts before making a move, with some even considering pulling money from their 401(k) retirement plan to cover the costs.
The Federal Reserve has maintained the federal funds rate range at 5.25% to 5.5% since July, with potential rate cuts expected in 2024. Homebuyers can find the best mortgage rates by shopping around and comparing options, such as using online marketplaces like Credible to compare rates and get preapproved with multiple lenders at once.
Rising home insurance costs are also impacting the ability of Americans to buy or keep a home, with 43% of respondents citing this as a concern. Home insurance premiums have increased by 55% in the last four years, adding to the financial strain on potential homeowners already facing high mortgage rates and home prices.
Despite these challenges, some buyers are finding creative ways to enter the housing market, such as house hacking and co-buying with friends or family to share costs. For those considering homeownership, it is important to shop around for the best mortgage rate and consider all options available to make the dream of owning a home a reality.