Homeownership Barriers Hit 7-Year Lows

Every barrier to homeownership measured by Fannie Mae's National Housing Survey has "collapsed to the lowest levels recorded" in the survey's seven-year history, Fannie Mae has reported.Barriers such as insufficient downpayment funds, inadequate information, job concerns, and discrimination all hit record lows in the latest survey, Fannie Mae said. Moreover, 60% of renters surveyed said buying a home is a very important or top priority. Fannie Mae concluded that Baby Boomers' transition from being parents with children at home to "empty nesters" will have "profound effects on the real estate finance and home remodeling industries," especially for originators of reverse mortgages. According to the survey, not having enough money for a downpayment and closing costs is "still the greatest perceived obstacle to homeownership," but only 29% of adults cited it as a major obstacle, compared with 52% as recently as 1996. Lack of confidence in job security ranked as a major obstacle for only 13% in the latest survey, compared with the high of 48% in 1996. Those citing "discrimination or social barriers" as a major obstacle totaled 6% in the survey, down from the high of 18% in 1996. Fannie Mae's website address is http://www.fanniemae.com.