A recent survey conducted by the Federal Reserve Bank of New York has unveiled a bleak perspective among American renters regarding their chances of becoming homeowners, with only 40% believing they will ever make the transition. This figure marks a record low, reflecting growing pessimism in the housing market.
The primary culprits behind this despair appear to be soaring mortgage rates and exorbitant listing prices. The survey highlights that almost three-quarters of renters now view obtaining a mortgage as a difficult endeavor, a significant increase from 51% who felt the same way in 2021 when interest rates were near zero.
Moreover, the outlook for the near future is not promising. Americans anticipate that mortgage rates will continue to rise and expect home prices to increase by 5.1% over the next 12 months. This rate of increase is nearly double the annual rise expected in 2023, compounding the challenges for those aspiring to buy homes.