economy
March 3, 2026
The Disappearing American Mortgage
Young and working-class people aren’t getting on the property ladder anymore.
TL;DR
- Mortgage applications are at their lowest point in 25 years, even lower than during the Great Recession.
- High home prices and interest rates, coupled with tighter lending standards post-Dodd-Frank, are pricing out middle-income households.
- Home builders significantly reduced construction after the Great Recession, contributing to a persistent housing shortage.
- Rising interest rates have 'locked in' existing homeowners with low rates, reducing available listings and further freezing the market.
- An increasing number of transactions are being made with cash by wealthy individuals and institutions, particularly in certain cities.
- Younger generations are facing a future as renters, with less opportunity to build wealth through home equity.
- The inability to become homeowners threatens the long-term financial security of the American middle class.
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