Housing prices jumped 6.6% since last year: Analyst

78% think homeownership is vital to the 'American dream'
Non-homeowners cite financial concerns as barrier to buying
Analyst says rates are not likely to fall any time soon

Updated: Jun 13, 2024 / 04:39 PM CDT

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(NewsNation) — Nearly 80% of Americans see homeownership as part of the “American dream,” but data suggests prices and mortgage rates are standing in the way.

BankRate’s 2024 Home Affordability Report found 56% of non-homeowners say income is the barrier keeping them from owning a home.

Data from the Federal Housing Agency shows home prices have risen 6.6% compared to last year and are showing signs of ticking up even more.

“People want to buy homes … those who are the on the outside looking in are finding it increasingly difficult in a time of high home prices and high financing costs,” said Greg McBride, chief financial analyst at BankRate, on “NewsNation Now”.

For those who did purchase a home, regrets regarding hidden costs and unexpected maintenance were reported by 40%.

“You got to be careful not to bite off more than you can chew because of the fact that, as anyone who’s owned a home will tell you, the unplanned expenses that pop up are inevitable,” McBride said. “That’s what catches first-time homebuyers by surprise.”

McBride also said potential homeowners should check their expectations, as it is unlikely mortgage rates will lower anytime soon.