Young Americans getting left behind by rising home prices, higher stocks
(MSN) – Just married and with a newborn son, Anthony and Caitlin Fumo expected their well-paying jobs and chunk of savings to support a move closer to their parents in the suburbs of New Jersey.
But leaving their 1,000-square-foot Philadelphia rowhome means borrowing with rates around 7% – to buy in a market where the typical home value has jumped 40% since the start of 2020. Their 3.85% mortgage costs $1,500 a month. They are looking at payments of around $4,000 if they move.
Friends who scooped up their forever homes during the pandemic refinancing boom, meanwhile, are able to raise multiple children and support a long-term mortgage comfortably, said Anthony, a 31-year-old accounting consultant. A longtime rule of thumb in American homeownership – buy a starter home, then move up to a bigger place – doesn’t feel like it works anymore.
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