Implode-o-Meter News - Homeownership slumps, remains elusive for many Americans, study finds

Homeowners who lost their homes to foreclosure are still struggling to clear their credit records so they can buy another home. Meanwhile, some big banks have moved away from offering subprime and government-backed loans and have significantly tightened credit requirements despite lowÂ mortgage rates, making it that much harder for some potential homebuyers to get their foot in the door. "How much house can I afford?" is no longer the mainÂ question potential homebuyers need to consider; it's "HowÂ will I afford it?"
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Although mortgage rates have remained well under 4% this year, it's not enough to drive homebuying to the levels that industry analysts had predicted. A shortage in inventory, tightened lending requirements and slow income growth are keeping many potential homebuyers on the sidelines, Zigas says, adding that high levels of student debt and a challenging job market for young people are dragging on demand for homes.

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Homeownership slumps, remains elusive for many Americans, study finds