Celebrating New Home Owners!
Most people in the early 1800s didn
’t have any means of owning a house. For one, real estate is extremely expensive, and most banks wouldn’t grant loans to an average American. Then the U.S. banking system stabilized in the 1860s due to the National Bank Acts and this allowed more Americans the benefit of borrowing to purchase a home.
In the early 1900s, mortgages had a term of five years and would require a 50% down payment. Then there was a great hiccup during the Great Depression as most banks couldn’t afford to lend money. This resulted in many potential homeowners’ inability to purchase while existing homeowners defaulted.
In 1944, the G.I. Bill was approved to assist World War II veterans through subsidized mortgages. This changed the American economy and housing, and by 1950, more than half of all Americans owned houses. Fast forward to 2004, and the rate of homeownership peaked at 70%, and as of today, about 64.8% of Americans own a home.
Bottom line is owning a home is not easy. It takes years of saving, perseverance and hard work. New Homeowners Day is dedicated to everyone who crossed the bridge, paid the dues, and finally has a new house to celebrate!