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American Home Ownership Stuck At 18 Year Low

From Bloomberg:

American Dream Slipping as Homeownership at 18-Year Low

By Prashant Gopal & Clea Benson | July 30, 2013

The U.S. homeownership rate, which soared to a record high 69.2 percent in 2004, is back where it was two decades ago, before the housing bubble inflated, busted and ripped more than 7 million Americans from their homes.

And how many billions (if not trillions) in government money was spent trying to provide home-ownership for everyone?

With ownership at 65 percent and home values rising, housing industry and consumer groups are pressing lawmakers to make the American Dream more inclusive by ensuring new mortgage standards designed to prevent another crash are flexible enough that more families can benefit from the recovery.

Regulators are close to proposing a softened version of a rule requiring banks to keep a stake in risky mortgages they securitize, according to five people familiar with the discussions.

Lawmakers currently shaping housing finance are seeking to reduce the government’s role in keeping rates affordable for riskier borrowers while ensuring homeownership is within reach of minorities and first-time buyers who could be needed to sustain the housing recovery as borrowing costs rise from record lows

And never mind that the ‘financial meltdown’ was caused by the government forcing banks to make bad mortgages in the first place.

The homeownership rate in the second quarter was unchanged from the prior three month period, according to Census Bureau data released today. It will hit bottom at about 64 percent in the next year as families leave the foreclosure pipeline and enter rental homes, according to a May analysis by London-based Capital Economics Inc. It’s currently the lowest in almost 18 years after averaging about 64 percent for 30 years through 1995…

The rate for blacks reached almost 50 percent in the second quarter of 2004 from about 43 percent in 1995, Census Bureau data show. By the second quarter of this year, it had dropped to 42.9 percent. The rate for whites fell to 73.3 percent in the second quarter, from 76.2 percent in 2004…

In the midst of a new economic push, President Barack Obama, who spent much of his first term managing the foreclosure fallout, is now turning to buying homes.

“The key now is to encourage homeownership that isn’t based on bubbles, but is instead based on a solid foundation where buyers and lenders play by the same set of rules, rules that are clear, transparent and fair,” Obama said in a July 24 speech…

Right. Obama is all about transparency. Especially when it comes to the civil right to get a mortgage.

This article was posted by Steve Gilbert on Wednesday, July 31st, 2013. Comments are currently closed.

6 Responses to “American Home Ownership Stuck At 18 Year Low”

  1. Rusty Shackleford

    “With ownership at 65 percent and home values rising, housing industry and consumer groups are pressing lawmakers to make the American Dream more inclusive by ensuring new mortgage standards designed to prevent another crash are flexible enough that more families can benefit from the recovery. “

    In other words, “We want the government to FIX that which the government has screwed up.

    “When you’re lookin’ to get your horses back into the barn, you’d be best served by not using the guy that let them out to begin with.”

    Who said that? I said that. Today. You can quote me.

  2. Petronius

    If we needed anymore proof that the country is being run by gangsters, this is it.

    “make the American Dream more inclusive by … ensuring homeownership is within reach of minorities and first-time buyers….”

    Boy does that sound familiar. Been there, done that.

    The 2008 subprime meltdown brought the country to its knees but there’s still more work to be done. So here is the regime’s Plan B:

    1. During a period of chronic high unemployment we will grant amnesty to 11 million migrants, drifters, and criminals and flood the country with an additional 35 million unskilled, uneducated minority Democrats.

    2. Force banks to give them subprime mortgages that they can’t afford.

    3. Kick back and watch the country burn.

    4. Make sure all the banks fail this time by enacting a new “rule requiring banks to keep a stake in risky mortgages they securitize….”

    So the banks have to assume the risk of the high-risk loans that the government will force them to make.

    Brilliant.

    I suppose it would be “racist” to propose that homebuyers have some skin in the game by requiring 20 percent down payments? (A rhetorical question.)

    By the way, the current 65 percent homeownership rate is actually high by US historical norms (“averaging about 64 percent for 30 years through 1995…”). Germany, which is a highly industrialized country with a stronger economy than ours, has a homeownership rate of about 42 percent.

    So why do we need to drive it higher? (Another rhetorical question.)

    Answer: Because when we destroy the markets and the banking system we can blame it on “the manifest failures of capitalism and free markets.”

  3. Blue State Centric

    Red State home values and sales upward

    Home sales in Williston, ND through the roof, if there is still a roof up there

    • I remarked yesterday about my lady friend in Texas talking about the boom going on down there. Her daughter’s house in Fort Worth was on the market for just 10 days before it sold at the asking price. That’s what happens when you give people free markets and low regulations.

      I’ve been stuck living in (so it won’t fall down) and trying to sale my deceased mother’s home for three years here in northeastern NC. I did a zillow.com search the other day just to see how many homes were for sale in this area. 26 homes for sale in a town that’s only 1.2 square miles. Looks like I’ll be here a while. (sigh)

      But there is hope. The republicans took over the NC legislature for the first time in 114 years and we have a republican govenor so we may get some free market capitalism and less regulation in this state. God knows we need it.

  4. bousquem25

    I thought the whole making things more “flexible” caused the whole meltdown in the first place. The goverment forced the banks to loan to people who had no reason to be granted any loan but then also allowed them to shuffle these crap loans off to other investors packaged as safe securities, with some of the biggest investors being the feds themselves.

  5. hazard5

    Whoa whoa whoa. Before we all start dancing around the campfire at rising home sales for single family homes, I’d like to know if any of you have actually looked into how many single families are buying these homes. Probably none of you because if you have been keeping up with any credible business news you’d know that its hedge funds that are purchasing huge swaths of homes in all price ranges to hand over to property managers to rent until they get a chance to sell them for a nice profit.
    I’m a tried and true Reagan republican and these shenanigans stink to the high heavens.

    The bottom line here is that hedge funds have decided that real estate is a more reliable commodity to buy and trade(dump) than stocks. So now American families are in competition with giant corporate banks when trying to purchase a home. Its a screw job on the american people.
    http://online.wsj.com/article/.....40412.html




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