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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 60 May 2025 J O U R N A L Lending/Originations DESPITE COST BARRIERS, HOMEOWNERSHIP STILL KEY TO THE AMERICAN DREAM D espite rising home prices and financial strain, 82% of Amer- icans still consider owning a home part of the American Dream, according to Bankrate's 2025 Home Affordability Survey. That figure is up from 78% in 2024 and surpasses aspira- tions like retirement (71%) or a successful career (66%). Americans consider homeownership the cornerstone of the American Dream, more so than anything else. This belief hasn't wavered and has only gotten stronger despite increasing affordability challenges," said Greg McBride, Chief Financial Analyst at Bankrate. Affordability is the top obstacle for would-be homeowners. Among non-homeowners who desire to buy, 83% cite cost-related issues. Specifically, 59% say their income isn't enough, 55% point to high home prices, and 46% say they can't afford a downpayment or closing costs. For aspiring homeowners, 81% call these upfront expenses a significant barrier. Saving enough feels out of reach for many: 20% of non-homeowners believe they'll never save enough for a down payment. Others expect to need several years—12% say at least 10 years, while only 4% say they'll save enough within a year or two. Still, 64% of Americans say they'd be willing to make lifestyle changes for affordable housing. Among these, 29% would downsize, 24% would move out of state, and 19% would consider moving farther from family and friends. Gen Zers were most likely to say they'd relo- cate for affordability. Current homeowners report having reached their goals mostly through saving: 44% said they intentionally saved for a down payment, while others relied on grants (17%), family gifts (15%), or additional income (10%). Although owning a home may sound like a dream to most, the report shows that regrets about homeownership are common. Among homeowners with regrets, 40% cited maintenance and hidden costs. Others regretted buying too small a property (18%), paying too much (14%), or having a mortgage that's too high (13%). Despite these regrets, 69% of home- owners say they'd buy their current home again. That number rises to 77% among Gen Z and 76% among millen- nials. Even with the obstacles, aspirations remain strong, underscoring a lasting cultural value. As McBride noted, "This belief hasn't wavered and has only gotten stronger despite increasing affordability challenges." MAKING THE MOST OF DOWN PAYMENT ASSISTANCE PROGRAMS T he latest Q1 2025 Homeowner- ship Program Index (HPI) report from Down Payment Resource (DPR) found the number of entities offering homebuyer assistance programs increased by 55 year over year (YoY). The number of programs increased by 43 during the first quarter, bringing the total number of available programs to 2,509. Downpayment assistance (DPA) can be used by lenders to lower a homebuyer's loan-to-value (LTV) ratio by an average of 6%. The average benefit is $18,000. "Rates are still high, and prices keep climbing, but we're seeing expanded pro- gram offerings, new providers, and great- er flexibility in how funds are used—not just for down payments, but also to cover