Why is home ownership being threatened

Despite a much rosier outlook for jobs, incomes are still not keeping pace with housing market prices, said Jed Kolko, chief economist for Trulia.

And that could make it hard for buyers to afford homes in the areas they want to live in. Lenders will be too skittish. For Mark Zandi, of Moody's Analytics, the key risk to the housing market recovery is still the difficulty many potential homebuyers have getting mortgages.

Even though Fannie Mae and Freddie Mac recently eased lending standards, it doesn't mean lenders are going to take it easier on borrowers. In fact, many lenders may still be too nervous to lend to borrowers who don't have near perfect credit or large cash down payments.

In addition, former homeowners who lost their home to foreclosure may have to overcome damaged credit histories financial burdens brought on by the recession, said Kolko. Meanwhile, Millennials who might be looking to buy have short-lived credit histories and heavy debt loads from student loans to contend with, he said.

A sharp increase in mortgage rates. A must-read political newsletter that breaks news and catches you up on what is happening. Most Popular - Easy to read, daily digest of the news from The Hill and around the world. The Hill's must read political newsletter that breaks news and catches you up on what happened in the morning and what to look for after lunch. Delivered to your inbox every weekday evening, our politics and policy newsletters are a daily digest of today's news and what's expected to break tomorrow.

National Security. Agency Insider. Don't miss a brief. Sign up for our daily email. Your Email. The rise of renters. Why millennials are obsessed with real estate platforms. Overcoming fear as a first-time homebuyer. To narrow racial wealth gap, Biden plan takes aim at home appraisal inequality. Also Included in. Tags in this Story. Share this Story. Continue reading your article with a WSJ membership. Resume Subscription We are delighted that you'd like to resume your subscription.

Please click confirm to resume now. Sponsored Offers. Most Popular News.