First-time homebuyers are faced with two major challenges in the housing market that are keeping them from purchasing a home: scarce inventory and higher home prices. In more than half of the largest U.S. housing markets, home values are rising quickly among entry-level homes, according to Zillow’s Real Estate Market Report.
This phenomenon is fueled by a devastatingly low supply of homes for sale on the market. Zillow reported that there are 5 point 9 percent fewer homes for sale in the U.S. than a year ago and 10 point 4 percent fewer entry-level homes for sale this year compared to last year. According to Zillow's data, home values rose 4 point 8 percent to 186 thousand 200 dollars, while rents rose 2 point 6 percent to 1 thousand 389 dollars.
Wells Fargo unveiled new corporate social responsibility goals that included a multibillion-dollar mortgage pledge to minority and low-income communities. The 2020 economic commitment goals will include 500 million dollars for critical economic needs such as financial education and affordable housing. In addition, the bank will give 150 billion dollars in mortgage originations to minority households and 70 billion dollars in mortgage originations to low-to moderate-income households through retail and correspondent networks.