Tag Archive for ‘homeownership’

Homeownership Remains Primary Driver of Household Wealth

The 2019 Survey of Consumer Finances (SCF) showed improvements in economic well-being for many across income and wealth distributions over 2016 to 2019. The homeownership rate increased from a low of 63.7% in 2016 to 64.9% in 2019. Moreover, the primary residence continued to be the largest asset on the balance sheets of households in 2019 (Figure 1), accounting for about… Read More ›

Little Change for Total Consumer Credit in 2020

As with most things in 2020, consumer credit’s trajectory of growth was upended by the COVID-19-induced economic recession. Revolving credit, of which credit card debt is a major component, shrank by 11.2% over the year, while nonrevolving credit increased 3.9%, thus producing an overall growth rate of 0.0%. In December, consumer credit increased at a seasonally adjusted annual rate of… Read More ›

Homeownership During the Third Quarter: Technical Issues

The Census Bureau’s Housing Vacancy Survey (CPS/HVS) reported the U.S. homeownership rate declined to 67.4% in the third quarter of 2020, from 67.9% in the prior quarter. The elevated homeownership rates are line with increases in both existing and new home sales in the second quarter. The national rental vacancy rate increased, while the homeowner vacancy rate remained unchanged. However,… Read More ›

Economic Well-Being of U.S. Households

The Federal Reserve Board recently released its Report on the Economic Well-Being of U.S. Households. The report provided results from the responses to the 2019 Survey of Household Economics and Decisionmaking (SHED), as well as from responses to a follow-up survey conducted in April 2020. Surveyed items included income, employment, dealing with expenses, banking and credit, housing, education, and retirement…. Read More ›

Uncertainty Looms as Economy is Poised for Recovery

The 30-year fixed-rate mortgage rate has been known to follow, albeit loosely, the 10-year Treasury yield. The latter is a widely tracked economic indicator and serves not only as a sign for the pulse of the U.S. economy, but also as a premium for pricing myriad financial instruments, upon which characteristics specific to the financial instrument are added. Throughout the… Read More ›

Minority Homeownership Rate Jumps in First Quarter

Data released by the Census Bureau’s Housing Vacancies and Homeownership survey (CPS/HVS) show that the minority homeownership rate increased to 49.3 percent in the first quarter of 2020, up 2.2 percentage points from the first quarter of 2019 (Figure 1). This is the highest it has been since the first quarter of 2010 (49.5 percent). The year-over-year gain in the… Read More ›

Minority Homeownership Rate Posts a Year-End Gain

The minority homeownership rate increased to 48.6 percent in the fourth quarter of 2019, up 0.8 percentage points from the fourth quarter of 2018, according to a new data release from the Census Bureau’s Housing Vacancies and Homeownership survey (CPS/HVS) (Figure 1). This is the highest it has been since the third quarter of 2011 (48.9 percent). This year-over-year gain… Read More ›

Homeownership Rate Reaches Six-Year High

According to the Census Bureau’s Housing Vacancy Survey (HVS), the U.S. homeownership rate increased to 65.1% in the fourth quarter of 2019.  This is 0.5 percentage points higher than the previous quarter reading of 64.8% and the highest the rate has been since the last quarter of 2013.  Even so, the homeownership rate remains well below the 25-year average rate… Read More ›

Consumer Credit Continues to Expand

The Federal Reserve’s latest G.19 Consumer Credit Report shows rising trends in consumer credit, excluding loans secured by real estate, through November 2019. In November, consumer credit increased at a seasonally adjusted annual rate of 3.6 percent from the previous month, with revolving debt1 decreasing by 2.7 percent and non-revolving debt2 increasing by 5.8 percent. Consumer credit totaled $4.2 trillion… Read More ›

Tracking Lifetime Homeownership Rates

A recent NAHB Special Study uses the National Longitudinal Survey of Youth (NYLS) to study lifetime homeownership rates and how long individuals sustain in homeownership. The study finds a lifetime homeownership rate of 90.5% among the 1979 NLSY cohort, meaning that most people become homeowners at some point in life (Figure 1). This finding is a reminder of the importance… Read More ›