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Home Ownership at 50 Year Low!

You would have thought by now with the economy growing at a steady clip since the recession, unemployment rates currently at 10 year lows, and a stock market that is at all- time high, home ownership would be at much higher levels in 2017. Unfortunately, it is not! From 2007-2015, over 9 million homes were lost in foreclosures and short sales. Many homeowners suffered a significant reduction to their credit scores due to this, lost their home equity at that time, and have not rebounded since.

After several bank failures in 2008, the Obama administration put tighter restrictions on banks to include higher reserves and stricter lending practices. (Frank-Dodd Act) I believe this to be the main contribution to low home ownership today! I have stated before, I am not favorable to banks or lender doing their "due diligence" when it comes to lending money to borrowers. President Trump has promised to revise the Frank-Dodd act to allow lenders to loosen restrictions. Another factor is total "student loan debt," topping over $1 .3 trillion dollars. This is more debt than total "credit card" debt nationwide. Our children deserve the opportunity to have an excellent education, but at what cost? To add to this, Millennials are delaying getting married, and purchasing their first homes.

Additionally, rising rental rates have hindered cost-burdened renters the opportunity to save for a home "down payment." Compared with pre-recession highs, homeownership declines were largest among minority households, young adults, one-person households and single-parent households.

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