Summary
A report from the Federal Reserve Bank of New York shows that lower-income Americans are more likely than wealthier ones to plan to buy a home in the next four months. This shift in home-buying intentions goes against previous thoughts that higher income leads to more home purchases. Experts suggest this trend might be due to market conditions and geographic factors.
Key Facts
- 8.6% of people making under $50,000 plan to buy a home in the next four months.
- Only 5.9% of those earning over $100,000 have similar plans.
- The Federal Reserve Bank of New York's survey shows an increase in spending on homes, appliances, and electronics.
- Median year-over-year growth in monthly household spending rose to 4.9% in December.
- Factors like locked-in lower interest rates and home equity affect wealthier Americans' decisions not to move.
- Experts note that low-income buyers face challenges due to being priced out of many listings.
- The income needed to buy the median-priced home with a 6% mortgage is beyond $50,000 per year.
