We often end our Road Home Newsletters with the closing….Onward and Upward!
You’ll see below that we’re keeping that positive and hopeful ending in this message as well.
But in between – we’re raising our voice – your voice – because the “in between” ain’t going so well for aspiring homeowners.
Most of our Members are existing homeowners – we’re very proud to represent them. But there are over 50 million existing homeowners, and we are not close to having all of them join the America’s Homeowner Alliance. Not yet.
Our existing homeowners have seen a boom in house price appreciation. God Bless America for that. The generational wealth being built is legendary. We are confident we have had meaningful impact on housing policy to help you realize some of the wonderful increased value in your existing home.
But – while that is spectacular for existing homeowners, we’re finding it harder and harder to get policy makers to listen and act in the best interest of future aspiring homeowners.
Low rates created a path to homeownership
As the Federal Reserve was driving down interest rates from 2010 to 2022, they created an affordable pathway to homeownership for millions of Americans by putting 30-year fixed rate mortgage loans on America’s balance sheet at mortgage interest rates around 3% or under. It was remarkably unprecedented and helped the economy recover and homeownership to thrive.
But that came to a screeching halt in mid-2022 when the Federal Reserve started raising interest rates eleven times in the subsequent eighteen months causing mortgage rates to triple. Under the banner of curbing inflation, the Federal Reserve actions to hike interest rates foreclosed the opportunity of homeownership for millions of Americans. Since then, the rate of homeownership in America has fallen in nearly every category.
Homeownership rates have plummeted
Add the debilitating interest rate increases by the Federal Reserve over the period from mid-2022 to the end of 2023 to the accelerating constriction of credit during the same time and the radical reduction in homes available for sale and this is what you get: Much higher interest rates – more challenge in credit accessibility – fewer homes for sale – rising home prices – and a homeownership crisis like we haven’t seen since the Savings & Loan Crisis in the late 1970’s and early 1980’s.
Action plans to help aspiring homeowners
But – fear not! We have practical housing policy solutions for every one of these troublesome categories. We have a plan for the Federal Reserve that would stimulate growth in homeownership. We have action plans to break down some of the credit access barriers. We have recommendations to inspire homebuilders to build more affordable housing, and we have an action plan to get consumers more prepared for homeownership than ever before.
This is not the time to wilt under the relentless stress on homeownership opportunity – it is the perfect time to call for actionable steps to correct this ugly trend. Together we can make a difference. But we need the voice of every existing homeowner in America and every person with aspirations of someday becoming a homeowner. Please join us in our effort to push policy makers to focus as much energy on fixing the homeownership crisis in America as they are in reducing the government bureaucracy; fixing the immigration crisis; and managing conflicts across the globe.
Homeownership is desperately important to those fortunate to have already benefitted from owning a home and those millions of aspiring homeowners watching the homeownership opportunity being foreclosed on them through bad housing policy.
Membership in the America’s Homeowner Alliance is FREE. Join us please at www.myaha.com. We can do this. Just follow our lead and we can solve this homeownership crisis.
It’s Onward and Upward from here!
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