Buying and owning a home remains a priority for Americans, recent market research from U.S. Mortgage Insurers (USMI) confirms.
In 2024, nearly 8 in 10 Americans viewed it as an important milestone, despite 58% of respondents answering that it has become harder to purchase a home in the last few years, the firm says.
From 2021 to 2024, there was a 6% increase in the number of Americans who viewed homeownership as important, according to USMI’s 2024 Homeownership Market Survey.
USMI’s survey contains key insights into the housing market, which can be valuable to policymakers as potential homebuyers look to them to address issues around affordability.
With U.S. housing prices rising 4.5% year-over-year and 30-year mortgage interest rates hovering around 7%, it’s no surprise that a majority of respondents believe it has become more difficult to buy a home.
When asked to specify what they believe is the largest challenge when buying a home, nearly 30% of respondents chose the inability to afford a down payment. Yet most respondents don’t know or are mistaken about down payment requirements, USMI says.
Many respondents believe a 20% down payment is needed and are unaware it can take more than a decade to save that much.
Many survey respondents were also unaware that it is very common to qualify for a conventional mortgage with a 3% or 5% down payment, especially for first-time homebuyers, who on average bring a 9% down payment to closing.
USMI reminds that mortgage insurance can help homebuyers enter into homeownership sooner with the ability to put down as little as 3%. Private MI has helped over 700,000 households purchase homes over the past year, and approximately 65% of those homeowners were first-time buyers. In addition to helping buyers who don’t have a 20% down payment, if a borrower experiences financial hardship, private MI companies work with servicers to help borrowers avoid foreclosure through loan modifications and other loss mitigation solutions.
Photo: Dane Deaner