Higher Home Prices and Higher Rates Mean Bigger Affordability Hurdles for the U.S. Consumer
Abstract: In the U.S., homeownership is often described as part of the “American dream,” a way for consumers to accumulate wealth and gain other economic benefits. Almost two out of three U.S. households own the home they live in, a relatively stable amount over the last decade. Buying a home is usually the largest investment that a consumer will make, and the purchase price usually far exceeds what most can afford out of their current savings. In 2022, roughly 70% of home purchases were made with the help of mortgage financing.
File(s): File format is application/pdf https://www.chicagofed.org/-/media/publications/chicago-fed-letter/2023/cfl481.pdf?sc_lang=en
Provider: Federal Reserve Bank of Chicago
Part of Series: Chicago Fed Letter
Publication Date: 2023-08
Volume: no 481