The Census Bureau says just 36 percent of Americans under age 35 own a home. In 2007, that figure was 42 percent.
Some young people enjoy renting, but a recent survey by Fannie Mae showed 9 in 10 would prefer to own. They have been held back by tight lending standards that have made it tough to get around their heavy student debts and light savings.
But in December, Fannie Mae and Freddie Mac announced programs that would allow first-time buyers to get homes with down payments of just 3 percent, instead of 5 percent.
That lower amount would allow creditworthy but cash-strapped young buyers to qualify for mortgages. "If access to credit improves, we could see substantially larger numbers of young buyers in the market," Jonathan Smoke, chief economist for Realtor.com, said in his 2015 outlook.
Some young people enjoy renting, but a recent survey by Fannie Mae showed 9 in 10 would prefer to own. They have been held back by tight lending standards that have made it tough to get around their heavy student debts and light savings.
But in December, Fannie Mae and Freddie Mac announced programs that would allow first-time buyers to get homes with down payments of just 3 percent, instead of 5 percent.
That lower amount would allow creditworthy but cash-strapped young buyers to qualify for mortgages. "If access to credit improves, we could see substantially larger numbers of young buyers in the market," Jonathan Smoke, chief economist for Realtor.com, said in his 2015 outlook.
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