You may have seen the headlines lately about mortgage debt in America hitting a record high. And maybe your brother-in-law brought it up at the dinner table like he’s been waiting all week to spark a debate.
Here's the thing. He's not wrong. But he only has half the story. And the half he's missing? It changes everything.
It’s one of the biggest hold ups some buyers have right now: “What if I buy, and home prices go down?”
With everything in the news, that concern makes some sense. No one wants to make a big financial decision at the wrong time. But here’s what’s important to know. You don’t want to get hung up on the few places seeing slight declines right now.
You've probably seen the headlines saying, "foreclosures are on the rise,” and maybe your mind jumped straight to 2008. That’s understandable. A lot of people remember that crash and all the foreclosures that happened during that window, and they’re hoping something like that never happens again.
But this isn’t a repeat of what happened back then. Here’s the context to prove it.
You’ve probably asked yourself lately: Is it even worth trying to buy a home right now? It’s a question a lot of people are asking.
With today’s home prices and mortgage rates, renting can feel like the easier path. In some cases, it might even seem like the only realistic option right now. And if that’s where you are, there’s nothing wrong with that.
You’ve probably seen posts on social media talking about how “home prices are falling.” And when you see something like that, it’s normal to wonder:
Is this the start of a crash?
What does this mean for my house?
Let’s clear this up right away. This is not a crash. And your home is not suddenly losing a lot of value.
What if you didn’t have a mortgage payment on your next house? It may sound a little unrealistic. But for a number of homeowners, it’s actually doable.
Nearly 3 in 10 homes purchased today are bought in cash, according to the National Association of Realtors (NAR). That’s far more than the pre-pandemic norm (see graph below):
So, how are so many buyers pulling that off? The answer is simple: home equity.
For a lot of parents or grandparents, watching a family member struggle to buy their first home right now is hard. That's because you saw firsthand how homeownership gave your life more stability and helped grow your net worth – and you want your loved ones to have those same opportunities.
You may have heard homeowners today have a lot of equity built up. But what does that really mean? Let’s break it down.
Because your equity isn’t just a number, it’s a powerful asset that can help you take your next big step in life.
Here’s how it works. As you pay down your loan and home prices rise through the years, the share of your home that you own free and clear grows. That’s your equity.
For a growing number of homeowners, retirement isn’t some distant idea anymore. It’s starting to feel very real.
According to Realtor.com and the Census, nearly 12,000 people will turn 65 every day for the next two years. And the latest data shows as many as 15% of those older Americans are planning to retire in 2026. And another 23% will do the same in 2027.