CHICOPEE, Mass. (WWLP) - The American dream of owning a home is now starting to be put on the back burner. The U.S. housing market is feeling its biggest drop since the Great Depression.
New numbers from the Census bureau show that the homeownership rate in this country fell to 65% last year. Experts believe that these numbers seem to indicate that the U.S. may never have another housing boom peak like the one seen during the mid-decade.
So what's the reason behind this drop in Americans owning a home? Many blame the tighter-credit rates, prolonged job losses and reduced government involvement.
Who makes up for this drop? Unemployed young adults in their twenties are more likely to delay their first-time home purchase, by living at home with mom and dad. Middle-aged adults, ages 35-64, used to make-up the highest ownership rate, but that group was hit with mortgage foreclosures and bankruptcy after the housing market bust back in 2006. Those ages 65 and older now have the highest ownership rate nationwide.
There is some good news if you are looking to purchase or refinance a home. That is because the average mortgage rate has hit its lowest level ever. The average rate on a 30-year fixed mortgage fell to 3.94% last week.