You don’t have to look far. The FIGHT is right in front of you. For many of you, this fight is not optional. You – and homeownership opportunity - have been “sucker-punched”.
Think we’re kidding? Here’s a “punch-list” of body blows that aspiring homeowners, like you, have taken while the usual industry “protectors” are hunkered down in their corner.
Costs to make home loans have increased to your detriment.
The cost for a lender to produce a mortgage loan rose to over $13,000 per loan this year. Yep – you are getting “punched” with $13,000 of cost for a lender to produce your loan in addition to your downpayment and closing costs! It is unaffordable, unsustainable, and unacceptable – so let’s fight to whittle this back to acceptability. The cost in 2009 was approximately $3,700 per loan. That was a “jab” back then – but $13,000 per loan is a “knockout punch” today.
Costs to build homes have increased to your detriment. The average regulatory and compliance costs to build an average new home in America is $94,000 per house. That is a whopping punch to the gut of potential homeowners. Think we will have affordable homes with $94,000 of cost added to your home price? Nope – this is what fighters call a “haymaker”! Do you wonder who is doing the cost/benefit analysis on behalf of consumers? What value are you receiving for that extra $94,000 of expense included in the cost of a home?
Credit requirements for access to financing have increased to your detriment. The average credit score on mortgage loans produced and sold to the GSEs over the last five years was 750. No – that is not a misprint. 750. Somewhere around 800 is nearly a “perfect” credit score. People with prefect credit scores usually have lots of money. They don’t struggle to make ends meet – ever. How’s that feel to you? If you don’t have a darn near perfect credit score – you’re not welcome at these government agencies. It feels like they are throwing punches at you too!
Housing prices are increasing due to inventory restraints to your detriment. In March 2023 a CNN Business Report stated homebuilders were 6.5 million housing units behind the new household formation in America from 2012 to 2022. On top of that, existing home sales fell in September 2023 to their lowest level since 2010. There is a crisis shortage of housing inventory. There are millions more people trying to become homeowners and a severe shortage of supply. Prices will continue to rise when there is aggressive demand and weak supply. Much of this is because of Government Housing Policy. How does that feel to know that you are fighting against an opponent named the Government?
Institutional Investors are making the inventory problem worse. Whatever you “weigh” in this fight – there is a much bigger and stronger opponent who outweighs you by a LOT! Your opponent is “Institutional Investors” who bought approximately 33% of all single-family homes sold in America last year. They make bids over the listing price and buy these homes for cash so they can rent them back to aspiring homeowners they just knocked out of a chance for homeownership. They win – you lose! This results in a transfer of wealth opportunity from Main Street America (YOU) to Wall Street America (INSTITUTIONAL INVESTORS). How does it feel to fight an opponent you cannot possibly beat on your own?
Interest rates continue to increase to your detriment. The government decided to raise mortgage rates from 2.5% to around 8% over the past 18 months. Yep – many of you have been, literally “knocked out of the ring.” It is not just mortgage rates – it’s interest rates on everything – credit cards – auto loans – small business loans – student debt, etc. This may have been the most devastating punch of all.
All of this is meant to show you what kind of fight we’re in to save single-family homeownership in America.
If we don’t rise up – show some solidarity – and fight back – we’re all going to get “knocked out”. If you want to be a homeowner – you’ve been delivered a series of “knock out punches”. If you are an existing homeowner – who will you sell your home to when the time comes? You’ve been delivered a “Technical Knock Out” too!
Unless we put up a fight, the Policy Makers and other people who want this to be a rental society will win.
America’s Homeowner Alliance will do the fighting for you. We won’t cower to these forces of evil.
You only need to throw one “punch” – by joining the AHA. It’s free for a lifetime. We’ll do the rest of the fighting for you.
Why? Because there is strength in numbers. When policy makers see 5 or 10 million people who pay taxes and vote aligned on a topic like this – they will snap to attention. That’s how you fight back. No surrender. Fight for what you need!
If there ever was a cause worth fighting for – this is it. Do it for your family – your kids – your grandkids – your neighbors. Do it because freedom…. liberty….and the ability to own a home in America are worth fighting for. We will fight until we win this battle.
We need new volunteer “fighters” – join the America’s Homeowner Alliance (www.myaha.com).
FREE lifetime membership for the next one million members!
You join….we’ll do the fighting!!