According to an article by Chris Matthews in Fortune Magazine, the U.K.'s decision to leave the European Union cold mean higher home prices in the U.S.

It may seem strange that a political decision in the U.K. could have any impact on American housing prices, but such is the nature of an increasingly interconnected global economy. 

First, one of the immediate effects was to send yields of the 10-year Treasury falling, which is going to put downward pressure on mortgage rates, though slowly and not by much yet. Mortgage rates typically move with delay, especially in the way down. But eventually, lower mortgage rates means higher home prices because low rates enable homebuyers to afford a more expensive home with the same income. 

Second,…

763 Views, 0 Comments

Read Full Post

The  American Dream of homeownership is alive and well. The personal reasons to own a home differ for each buyer, but there are many basic similarities. Eric Belsky is the Managing Director of the Joint Center of Housing Studies (JCHS) at Harvard University. He authored a paper on homeownership titled - The Dream Lives On: The Future of Homeownership in America. In his paper, Belsky reveals five financial reasons why people should consider buying a home. Here are the five reasons:

Housing is typically the one leveraged investment available.

 You're paying for housing whether you own or rent.

Owning is usually a form of “forced savings.”

There are substantial tax benefits to owning.

Owning is a hedge against inflation.

It is evident…

566 Views, 0 Comments

Read Full Post