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Home prices make the biggest jump in four years

Home prices make the biggest jump in four years

Higher rents, combined with higher home prices, are the number one reason for the decline in young homeowners, followed by lower marriage and fertility rates, according to a recent study by Freddie Mac.

“Historically low mortgage rates and increasingly favorable employment conditions should have generated a far greater number of home purchases by young adults, especially in the last five years,” said Sam Khater, Freddie Mac’s chief economist. “Unfortunately, home-price and rent growth above incomes — driven primarily by a severe shortage of housing supply — have been too high of a hurdle for many would-be buyers to clear.”

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