Homeownership is a hallmark of the American Dream; it’s one of the few paths to building generational wealth and achieving financial freedom. Unfortunately, for many, it can feel like a pipedream.
According to a recent report from the U.S. Census, the homeownership rate has dropped to 63.1%, its lowest rate since 1970. Moreover, the outlook for individuals from minority communities is even more bleak. Based on a report from the National Association of Realtors in 2021, the homeownership rate among Black homeowners (43.6%) and Hispanic homeowners (50.6%) significantly lagged behind Asian homeowners (62.8%) and white homeowners (72.7%).
Much of the gap can be attributed to historical policies and practices, such as redlining, that prevented minorities from buying homes in certain areas, regardless of income level. As a result, individuals from underserved communities were denied the same wealth-generating opportunities. While many of those policies and practices are now illegal, homeownership still feels unattainable for some consumers.
Increasing the homeownership rate — particularly among diverse communities — is a marker of progress for our country. Closing the gap is paramount to uplifting individuals and households from underserved communities. We have a responsibility as a mortgage and financial services industry to drive meaningful change and create a more equitable path to homeownership.
Driving homeownership change requires resolve and education
While there are programs designed to create a path to homeownership for low- and moderate-income families, some of these programs haven’t gone far enough. For example, some families may be able to access down-payment assistance through non-profits and lenders, however, those families frequently need more financial assistance to maintain and remain in their homes over the course of many years. Without the additional help, some families may lose their homes.
Quite frankly, providing access to financial resources is only part of the homeownership equation.
Based on a recent Experian survey comparing the experiences of Black, Hispanic and white consumers, one barrier for Black and Hispanic consumers aspiring to become homeowners is not knowing where to start. In addition, 58% of Black and Hispanic consumers who were denied a mortgage do not know what they need to do to get approved in the future.
There’s a tremendous opportunity for mortgage lenders, non-profits and other financial services participants to redefine our financial inclusion efforts. In addition to addressing financial hurdles, we need to tackle some of the other barriers to closing the homeownership gap, including financial education. This could mean examining the types of questions individuals have about certain products or services, or meeting with community leaders to better understand the challenges that underserved communities are facing.
Individuals and households from underserved communities welcome the opportunity to learn about basic financial concepts, including how to navigate the housing market. Listening to the challenges they encounter, and imparting knowledge is how the mortgage industry can help them prepare to become homeowners.
For example, HomeFree-USA’s “Fast Track to Homeownership” program gets renters ready for mortgage approval and homeownership. Its intermediary network oversees 53 affiliated community and faith-based housing counseling agencies across the nation.
Financial educational resources, such as tips for building and maintaining good credit, that is customized to each community, coupled with classes that provide individuals with financial knowledge and access to tools, can help them to boost their credit score and grow the overall homeownership rate. Even something as fundamental as understanding the various tax refunds for homeowners who are eligible can make a huge impact on new homebuyers.
Inclusion cannot happen in a vacuum. Closing the homeownership gap among diverse populations requires a long-term vision and commitment from stakeholders across the financial services community. Providing access to financial assistance and the knowledge to navigate the housing market better prepares consumers to become first-time homeowners, and more importantly, to begin building generational wealth.
Wil Lewis is the global chief diversity, equity, inclusion and talent acquisition officer for Experian. Gwen Garnett is the executive director for HomeFree-USA.
In our latest real estate tech entrepreneur interview, we’re speaking with Wendi Burkhardt from Silvernest.
Who are you and what do you do?
I’m Wendi Burkhardt, and I’m the CEO and co-founder of Silvernest. We’re an online roommate-matching platform that pairs boomers, retirees, empty nesters and other aging adults with compatible housemates for long-term homesharing. Through these creative living situations, they can earn extra income, remain in their homes longer and keep isolation at bay.
What problem does your product/service solve?
The US is seeing unprecedented growth in aging, with 12,000 individuals per day turning 65. Of this group, 90% have expressed a desire to age in place. However, studies show that nearly half of all adults over the age of 50 have less than $50,000 in retirement savings and earn less than $60,000 annually. Rising expenses such as housing (45% of total spend), life transitions and economic challenges leave millions of aging adults financially vulnerable and isolated. Additionally, one-third of aging adults live alone and prolonged social isolation is shows to have the same detrimental health effects as smoking 15 cigarettes a day.
Our homesharing solution enables homeowners to remain in the homes and communities for as long as possible, while helping them generate extra income to fill their retirement savings gap or offset expenses. Homesharing also helps renters because it opens up more rental space in cities across the country, so they can often get into a situation with below-market rent. Meanwhile, both parties benefit from the companionship that comes with sharing a home.
What are you most excited about right now?
The longevity economy is picking up a lot of attention from investors, businesses, and government. We’re excited that Silvernest is positioned to be a strong solution that addresses the challenges faced by Americans over 50 years old. We know this group, which is led by the baby boomers, does not want to age like their parents, so we see a big opportunity for Silvernest’s solution to help modernize the way we age.
What’s next for you?
We continue to expand our service offerings, as well as partner with organizations where our solution creates a synergistic offering. We’re also preparing to fully mass market across all 50 states.
What’s a cause you’re passionate about and why?
I continue to support women, especially mentoring new women entrepreneurs. In my career, I’ve found myself paving the way as an women entrepreneur myself. I’ve been fortunate to have great mentors, such as my mother, who have been amazing inspirations in my journey. I’m passionate to pay that forward to inspire and support other women, particularly those who are working to overcome challenges such as gaining access to capital.
Thanks to Wendi for sharing her story. If you’d like to connect, find her on LinkedIn here.
We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop me a line (drew @ geekestatelabs dot com).
Are you looking for a car that’s perfect for your teenager? Choosing the right car for a teenager is important because it needs to be safe, reliable, and affordable. In this article, we have compiled a list of ten cars that meet these criteria. From the popular Honda Civic to the versatile Subaru Outback, we’ve got you covered. So, if you want to help your teenager get behind the wheel of a car that will keep them safe and happy, keep reading!
1. Kia Soul
Photo Credit: Shutterstock.
The Kia Soul is a great car for teenagers because it is affordable, has good safety ratings, and comes with many features. It has a unique box-car design that sets it apart from other cars in its class, and it offers a spacious and comfortable interior. The Kia Soul is also known for its reliability and comes with a long warranty, which can give parents and teenagers peace of mind. Additionally, it has good fuel economy, making it an affordable car to operate. Overall, the Kia Soul is a great option for teenagers who want a fun and practical car that offers good value for money.
2. Toyota Corolla Hatchback
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This Toyota Corolla Hatchback does a lot of things right. It has a sleek and modern design and offers a comfortable and spacious interior. It also provides good fuel economy, making it an affordable car to operate. In terms of features, it comes with many standard features, such as a touchscreen infotainment system, Apple CarPlay, and Android Auto. Additionally, it has a reputation for being a reliable car and comes with a long warranty which keeps both parents and teenagers at ease in case of mishaps. In general, the Toyota Corolla hatchback is an excellent option for teenagers who want a feature-packed, reliable car.
3. VW Golf
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The Volkswagen Golf could be a suitable car for teenagers due to its practicality, performance, and comfort. It features a modern and attractive design and provides spacious and comfortable seating for up to five passengers. The Golf also delivers good fuel efficiency, which can help keep operating costs low. It comes equipped with several standard features, including a user-friendly infotainment system, Bluetooth connectivity, and a rearview camera. Additionally, the Golf has earned good safety ratings, making it a safe option for teenagers. However, it’s important to keep in mind that the Golf may be more expensive than some other cars in its class, so it may not be the best option for those on a tight budget.
4. Honda Fit
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This is an excellent car for teenagers and beginner drivers. With its compact design, great safety features, and affordable price, the Honda Fit is a sure bet for any teenager. It is designed to be very fuel-efficient and can help you get the most out of your gas money. Not to mention the numerous airbags, which of course, keeps you safe and help you convince your parents to get you this car. The Honda Fit is also extremely easy to drive because of its size, and like the name, it can fit in the tiniest parking spaces. So the Honda Fit is definitely a strong recommendation from us.
5. Mazda III
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The Mazda III is a practical, stylish, and enjoyable car that could be a great option for teenagers. Its sporty and sleek design provides a comfortable and spacious interior that can accommodate up to five passengers. The Mazda3 also delivers a responsive and engaging driving experience, making it a fun car to drive. It comes equipped with several standard features, including a user-friendly touchscreen infotainment system, Apple CarPlay, and Android Auto. Additionally, the Mazda3 is known for its reliability, and its long warranty is a huge money saver if any mishaps occur. With good safety ratings, the Mazda3 is also a safe option for young drivers.
6. Subaru Outback
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The Subaru Outback is an excellent off-road vehicle, just like the name implies. It performs well in both an off-road and on-road setting. Its spacious interior makes it the perfect car for camping trips. This car also boasts excellent safety features and even a built-in seat warmer if you’re in snowy weather. It’s also very fuel-efficient and can be great for long-distance travel. Finally, its greatest selling point is its price. The Subaru holds a massive advantage over other cars in this class. In conclusion, the Subaru is an excellent choice for young drivers.
7. Hyundai Accent
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The Hyundai Accent is a budget-friendly, suitable option for teenagers. It features a modern and straightforward design and a spacious interior that can accommodate up to five passengers. The Accent also delivers good fuel efficiency, which can help keep operating costs low. It comes standard with several features, including an easy-to-use infotainment system, Bluetooth connectivity, and a rearview camera. Furthermore, the Accent is renowned for being a dependable car, and its long warranty can give parents and teenagers peace of mind. With good safety ratings, the Hyundai Accent is also a secure car for teenagers to drive.
8. Honda Civic
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The Honda Civic is a versatile car that could be an excellent option for teenagers. Its sporty and modern design provides a spacious and comfortable interior that can accommodate up to five passengers. The Civic also delivers a smooth and enjoyable driving experience, making it a fun car to drive around town. Equipped with a host of standard features, such as an easy-to-use infotainment system, Apple CarPlay, and Android Auto, the Civic offers convenience and practicality. The Honda Civic is also renowned for being dependable, and it rarely breaks down. With excellent safety ratings, the Civic is also a safe choice for young drivers.
9. Toyota Prius
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Don’t be afraid to be mistaken as an Uber driver with the Toyota Prius. This excellent car has become a staple in the commercial transportation space because of its versatility, efficiency, and affordability. The Toyota Prius flaunts exceptional fuel economy, making it an eco-friendly car that can help keep fuel costs low. It comes equipped with many standard features, such as a user-friendly infotainment system, Bluetooth connectivity, and a rearview camera. In addition, the Prius is also very reliable and doesn’t break down easily so it is highly recommended for young drivers who are prone to making some errors.
10. Chevrolet Sonic
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The Chevrolet Sonic is a compact and versatile car that could be a great choice for teenagers. Its modern and stylish exterior hides a comfortable and spacious interior that can accommodate up to five passengers. With good fuel efficiency, the Sonic can help teenagers save money on gas, and its standard features, such as an intuitive infotainment system, Bluetooth connectivity, and a rearview camera, offer convenience and safety. The Sonic also offers a smooth and agile driving experience, making it fun to drive on city roads. It’s a reliable car that is backed by a long warranty, which can provide peace of mind for parents and teenagers alike. Furthermore, the Sonic has good safety ratings, making it a safe option for young drivers.
Buying a car for a teenager can be a daunting task, but there are plenty of great options available on the market. The cars listed above are some of the best cars for teenagers, offering a combination of safety, reliability, affordability, and practicality. Whether you’re looking for a compact car for city driving or an SUV for off-road adventures, there’s a car on this list that can meet your needs.
25 Extraordinary Sequels and Remakes That Outshine the Originals
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Every once in a while, a movie sequel or remake surpasses the original film. After polling the internet, “Name a single movie where the sequel or remake was better than the original?” Here are the top-voted responses.
25 Extraordinary Sequels and Remakes That Outshine the Originals
25 Blockbuster Films With Behind-The-Scenes Turmoil Unknown to the Public
Image Credit: 20th Century Fox
Several big movies with significant nightmare productions have some seriously delicious tea. After a recent poll on the internet, here are twenty-five films with disasters that made filming difficult.
25 Blockbuster Films With Behind-The-Scenes Turmoil Unknown to the Public
10 Celebrities Who Are Universally Disliked
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People will always have preferences and something to say about celebrities. What you might love may not be the same for others. Whether it’s about their past behaviors, legal issues, or feuds with other celebrities, here is a list of celebrities people just cannot stand.
10 Celebrities Who Are Universally Disliked
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Have you ever known someone and thought you liked them—until you learned about their hobbies? Then you get to know them and then you’re like, “Wow, red flag.” Well, you’re not alone.
These 10 Activities Are an Immediate Red Flag
Image Credit: Troma Entertainment
We’ve all been there – sitting through a movie that we can’t help but cringe at, but somehow it still manages to hold a special place in our hearts.
These 10 Terrible Movies Are Still People’s Favorites
Nearly a decade after the housing bubble burst, rising home values are finally raising the levels of home equity for millions of American families. By the end of the second quarter, more than 12.3 million homes were equity rich—meaning their owners owed less than 50 percent of the property’s value on outstanding mortgages—according to real estate data provider RealtyTrac.
But what are 2016’s homeowners doing with all that equity after the recession? Let’s take a look at the data.
Equity over the last decade
During the boom years, equity rose so quickly that many owners were accessing it for non-essential expenses in the belief that rising prices would quickly replace their withdrawals. When values plummeted in 2007, millions went “underwater” when they found themselves owing more on their mortgages than their homes were worth.
If they suffered financial reversals like unexpected medical bills or unemployment during the Great Recession, any of these families defaulted and lost their homes to foreclosure.
Homeowners of 2016 and equity
The lesson of the recession was not lost on today’s homeowners. Over the last few years, lenders (us included) have seen an increase in homeowners who are more careful about accessing their equity.
In fact, the leading reasons for both refinancing or taking out home equity loans seemed to be mostly expenditures that will save them money or improve their financial condition, like home remodeling that will improve the value of their home, paying off debt to reduce the amount they pay on interest, or making similar financial investments.
A recent survey by the Federal Reserve Bank of New York got to the numbers behind what many had already suspected.
Here are both the top three reasons homeowners are accessing their equity for cash and the three things homeowners who haven’t taken out their equity would do with it if they had.
When you increased the balance on your mortgage when you last refinanced, what did you use this money for?
To help pay my other debt, such as credit card debt, auto loans, student loans, or medical bills
50.7 percent
To make renovations or improvements to the home
43.7 percent
To make other financial investments (for instance, buy stocks)
12.2 percent
If you take out an additional loan on your primary residence over the next 12 months, what would you use it for?
To make renovations or improvements to the home
74.7 percent
To help pay my other debt, such as credit card debt, auto loans, student loans, or medical bills
19.2 percent
To pay for my regular living expenses
12.8 percent
Note: Respondents could select multiple uses. Questions were only asked of those respondents whose Probability of an Additional Loan in the next 12 months is greater than or equal to 10%.
This story has been updated with a statement from Better founder and CEO Vishal Garg. The company’s legal counsel said Garg couldn’t comment on the stock price, a representative said.
August 25, 2023 10:46 AM EDT
This story has been updated with a statement from Better founder and CEO Vishal Garg. The company’s legal counsel said Garg couldn’t comment on the stock price, a representative said.
After Wednesday’s big rally ended with bonds near their best levels of the day, there was some small chance that the bond market would take a more exuberance approach to Thursday with a bit of a follow-through rally. That said, there was a better chance that Wednesday’s rally was a limited-time engagement to blow off the oversold steam. It would have made slightly better sense for bonds to hunker down today ahead of Powell’s Jackson Hole appearance on Friday, and that’s exactly what happened.
Jobless Claims
230k vs 240k f’cast, 239k prev
Durable Goods
-5.2 vs -4.0 f’cast, 4.7 prev
Durable Goods, Excluding Transportation
0.5 vs 0.2 f’cast
08:37 AM
10yr up 3bps at 4.227 and MBS down 3 ticks (.09), with slight additional weakness after the data.
12:13 PM
Losing a bit of ground. 10yr up 3.1bps at 4.227 and MBS down 7 ticks (.22) in 6.0 coupons.
02:37 PM
Modest weakness continues. 10s up 3.5bps at 4.231. MBS down 6 ticks (.19).
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U.S. lenders issued a staggering $1.1 trillion in home loans between April and June, marking the biggest quarter in at least two decades, according to mortgage data firm Black Knight. The record quarter highlights the growing disparity between homeowners who are primed to take advantage of perfect conditions, and those who are simply desperate to not lose their homes.
The surge in activity was driven primarily by an unprecedented rush to refinance. With rates ticking down to historic lows, homeowners tested lenders’ capacity limits with more than 2.3 million refinancings in the quarter, the most in nearly 17 years. Seventy percent of the total loans originated by dollar value in the second quarter were refinancings, according to Black Knight’s data.
Most took advantage of 3% interest rates to lower monthly payments; cash-out lending comprised just 3 out of 10 refi originations in the second quarter, Black Knight found.
The third quarter is shaping up to be even wilder – locks on refis that are expected to close in the third quarter are up 20% from the second quarter.
“With market conditions as they are and given the recent delay of the 50 basis points fee on GSE refinances until December, we would expect near-record low interest rates to continue to buoy the market,” Ben Graboske, president of data and analytics for Black Knight, said in a statement. “After all, there are still nearly 18 million homeowners with good credit and at least 20% equity who stand to cut at least 0.75% off their current first lien rate by refinancing.”
And while the purchase market was down 8% largely due to coronavirus-related reasons, rate locks suggest that pent-up demand could lead to record activity in the third quarter.
“Purchase locks in Q3 2020 have already made up for the losses of a COVID-impacted Q2 – and then some – based upon normal seasonal expectations,” said Graboske. “In fact, rate locks are suggesting that we could see Q3 purchase lending break typical seasonal trends and rise by 30-40%, which would push us to a new record high.”
The growing inequality in America, however, is also highlighted in Black Knight’s Q2 report. Though unemployment dropped to 8.4% in August, more than 11 million jobs have disappeared since March. To compound matters, supplemental federal unemployment benefits totaling $600 a week expired in July. Markets with the biggest delinquency increases in July were in New York, New Orleans, Las Vegas, Orlando and Miami.
Loans that are more than 90 days past due – known as “serious delinquencies” – increased 450% from pre-pandemic levels, though total loans in forbearance continued to drop from a high in May.
Of the 3.9 million homeowners still in forbearance, 2.85 million have had the term of their forbearance plan extended while 1.07 million still remain in their original term, according to Black Knight. Homeowners with less equity and unfavorable credit were more than twice as likely to have entered forbearance plans.
What a letdown, but also what an unsurprising speech from Fed Chair Powell. He did the market a solid and threw in a mention of “R Star” and the inflation target, but not in a way that offered any new insight beyond anything shared at the last press conference. Markets had some positioning to work through in the wake of the speech, but the process was done by lunch with both MBS and Treasuries perfectly unchanged by the 1pm hour.
Consumer Sentiment
69.5 vs 71.2 f’cast, 71.6 prev
1yr inflation exp.
3.5 vs 3.3 f’cast
5yr inflation exp.
3.0 vs 2.9 f’cast
09:28 AM
Losing some ground. 10yr up 1.4bps at 4.255. MBS down 3 ticks (.09).
10:49 AM
Some weakness after Powell, but stabilizing now. MBS down 5 ticks (.16) and 10yr up .6 bps at 4.247.
02:57 PM
Additional gains, but modest. MBS up 1 tick (.03) and 10yr down 0.2bps at 4.239.
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Average U.S. mortgage rates for a 30-year fixed mortgage fell to an all-time low of 2.88% this week, the eighth time in 2020 the weekly rate has set a record in a Freddie Mac series that goes back almost five decades.
It fell from 2.99% last week, Freddie Mac said in a report on Thursday. The average 15-year rate fell to 2.44%, the lowest in almost 30 years of data, according to the mortgage financier.
Low mortgage rates help to support real estate demand by making it possible for more buyers to qualify for loans. This is because cheaper financing lowers monthly mortgage bills, which are compared to income to qualify applicants. Low rates also support price growth because buyers typically qualify for bigger mortgages.
“Mortgage rates hit another all-time low, giving potential buyers more purchasing power and strengthening demand,” said Sam Khater, Freddie Mac’s chief economist.
The problem facing buyers isn’t the rates, Khater said. It’s the dearth of homes for sale that has plagued the housing market long before coronavirus.
In June, the inventory of homes on the market fell to a four-month supply, according to the National Association of Realtors. A year ago, the number was 4.3 months.
“We expect rates to stay low and continue to propel the purchase market forward,” Khater said. “However, the main barrier to rising demand remains the lack of inventory, especially for entry-level homes.”
Mortgage rates began tumbling in March after the Federal Reserve made a pledge to buy mortgage-backed securities and Treasuries to support demand in the bond market, which is where most U.S. home loans are packaged and sold.
Home prices won’t drop, and could surge 15% once mortgage rates fall, Barbara Corcoran says.
There’s a shortage of homes for sale as people don’t want to give up their cheap mortgage rates.
The housing market is in good shape, and buyers will pounce once rates drop, Corcoran says.
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Good Morning America” this week.
In response to a massive inflation spike last year, the Federal Reserve has raised interest rates from almost zero to more than 5% since last spring. As a result, the average 30-year mortgage rate has surged from about 3% at the start of 2022 to 7.3% – the highest level since 2000.
Steeper interest rates encourage saving over spending and increase borrowing costs, meaning they typically pull down the prices of assets such as houses. However, home prices were down just 1% in May from their peak last June, the S&P Case-Shiller index shows.
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Prices have been shored up by a shortage of homes on the market, in part because many owners are reluctant to sell and give up the low, fixed mortgage rates they’ve locked in.
Corcoran started to say that “all hell’s going to break loose” once the Fed cuts rates and mortgages get cheaper.
“Every buyer on the sideline is going to jump into the market as long as the interest rates come down to 5% or 4%, and houses are going to go up in price all over again,” she said. “I wouldn’t be surprised if they go up by as much as 10% or 15% when that happens.”
The Corcoran Group founder also said a lack of inventory has resulted in a third of homes selling above the asking price, and the average home being listed for only 20 days before it’s snapped up.
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“The housing market is as strong as ever,” she said, although she noted it would be wise to wait until next year to sell.
“When all the buyers come off the sidelines, when interest rates come down, I’m going to get a lot more from my house than I would get right now,” Corcoran said.
The investor’s touted the health of the housing market before. In June, she suggested home prices could jump as much as 20% once interest rates drop by two percentage points.
She also dismissed concerns of a housing bubble in southern states such as Florida, arguing that people are speculating less and using more cash than debt compared to the mid-20 00s housing mania.