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| Census: More Home Owners Are In Their 20s
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(August 4, 2006) -- People in their 20s are more inclined to buy real estate now compared with 20 years ago, according to annual statistics from the U.S. Census bureau.
In 2005, almost 26 percent of household heads under 25 years old owned their home, up from 17 percent in 1985. Homeownership rates for 25 to 29 year olds also increased over the past two decades, from 38.6 to 41.0 percent.
The expansion of the secondary mortgage market, which includes government-sponsored giants Fannie Mae and Freddie Mac, changed underwriting procedures and made the decision more automatic and less dependent on an underwriters' opinion.
That opened the door for many young buyers, says Susan Wachter, professor of real estate and finance at the University of Pennsylvania's Wharton School.
A federal policy push on banks to increase access to mortgages also helped, she notes, as well as the availability of low- or no-down-payment financing. Wachter says if the market slows it could again for more difficult for people with lower incomes or little credit experience to buy homes.
Source: The Wall Street Journal and Newsday , Jamie Herzlich (08/01/2006) |
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