Most Americans still dream of homeownership, but the majority are waiting for mortgage rates to drop before they climb the ladder, according to a recent survey. Sixty-seven percent of respondents said owning a home was one of their most coveted goals, but 71% said they are waiting on rate cuts before entering the market, according to the BMO Financial survey.
High mortgage rates are not the only thing delaying the dream of owning a home; 43% of respondents said that rising home insurance costs may impact their ability to keep or buy a home. Gen Z feels most impacted by these costs , followed by Millennials . Homeowner insurance premiums have increased by 55% in the last four years as losses build and insurers struggle to recoup costs, according to a recent Guaranteed Rate Insurance report. In 2023 alone, insurance rates jumped 19%.
Higher mortgage rates and home prices mean that 20% of Americans spend roughly 30% of their paychecks on monthly home loan payments, and 10% spend more than half of their pay, according to a recent NewHomesMates.com survey. The survey said those ready to take the plunge have had to sink a larger portion of their paychecks into mortgage payments and make significant cuts to everyday spending.
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