Mortgage rates hover near three-month low, but big homeownership hurdles remain
Rates for home loans hovered near a three-month low, providing some relief for Americans in the market to buy or refinance a mortgage.
In the week ending March 13, 30-year fixed-rate mortgages averaged 6.65%, Freddie Mac announced Thursday. That's up fractionally from 6.63% last week, but still the lowest since mid-December.
Those figures don't include fees or points, and rates in some parts of the country may be higher or lower than the national average.
Applications for mortgages have spiked higher in March, according to the Mortgage Bankers Association. But as rates and home prices remain elevated, many Americans believe homeownership is increasingly out of reach.
Northwestern Mutual's 2025 Planning & Progress Study found that among Americans who are not currently homeowners, 53% say that owning a home will never be financially affordable – now or in the future. The biggest hurdle, according to respondents of all ages, is the down payment.
But down payment assistance programs have been helping Americans get over that hurdle for many years, and there are now more such programs available than ever before, according to Atlanta-based Down Payment Resource, which tracks them.
All 3,143 U.S. counties have at least one such program, while over 2,000 counties have 10 or more programs, a Down Payment Resource spokesperson told USA TODAY. The average benefit is $18,000, and a state-by-state program guide can be found here.
Andrea Munoz, 34, used down payment assistance from the city of San Antonio when she bought her first home in that city this winter. Munoz is a clinical lab assistant for a university health system and a single mom of five children ranging in age from seven to 17. .
When Munoz was diagnosed with lupus during one of her pregnancies, 'It was like a light switch that went off, I'm going to have more bad days than good days,' she said. 'I need to show my kids that you can still do good things, and create memories. That was like a turning point.'
It took several years, multiple attempts to work with housing counseling groups, and lots of heartache before Munoz walked in the door at the nonprofit Neighborhood Housing Services (NHS).
'I said I was very frustrated, I felt like I was never going to be able to own a home. It was just like a fading dream,' Munoz told USA TODAY. But NHS staff thought otherwise. They connected her with a real estate agent, and she applied for $12,000 of down payment assistance through a city program called Homeownership Incentive Programs.
But when a city employee called to tell her she'd been chosen for one of the HIP awards, the amount was $30,000. With that money, Munoz was able not only to put more money down, but also to buy down her rate a bit and have more left over for closing costs.
Munoz, who calls herself 'so blessed,' said she has simple advice for other aspiring buyers: 'don't give up.'
This article originally appeared on USA TODAY: Mortgage rates are near a three-month low; down payment funds can help
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
23 minutes ago
- Yahoo
Shuffle Board: Better Cotton Names Nonprofit Exec Nick Weatherill CEO
Global sustainability initiative Better Cotton announced Nick Weatherill as its next chief executive officer. Weatherill replaces Alan McClay, who announced his decision to step down last December after leading the organization since 2015. Weatherill previously served as executive director of the International Cocoa Initiative and brings ample experience promoting sustainability and human rights in global supply chains. Atlanta-based company Brrr has named David Ludd as vice president of sales and marketing. Ludd joined the company last year and has over three decades of experience in apparel sales and marketing. He most recently served as Coolcore's chief global sales and marketing officer and previously held senior leadership roles at Converse, Timberland, Nike and Levi Strauss & Co. More from Sourcing Journal Nike's 3D-Printed Air Max Set to Release This Summer StockX Says It Weeded Out Nearly $10 Million Worth of Counterfeit Sneakers Last Year Dr. Martens' Stock Soars as CEO Implements New Strategic Plan Following 'Year of Stabilization' French multinational luxury goods company Dior confirmed that Loewe's former creative director, Jonathan Anderson, will lead fashion for the LVMH-owned label. He'll lead all three Dior collections as creative director of women's, men's and haute couture—marking the first time the house has seen one creative vision since founder Christian Dior helmed the triptych role. Anderson succeeds Maria Grazia Chiuri, who stepped down last month after a nine-year run as Dior's first woman (ever) to lead its women's collection. American denim and sportswear brand True Religion has promoted Kristen D'Arcy and Tina Blake, as the brand expects annual sales to top $450 million this year, according to SJ's sister publication, WWD. D'Arcy was named True Religion's first-ever chief marketing officer in 2023. Now, her role has expanded to CMO and head of digital growth. In addition to leading the marketing team, D'Arcy's will also oversee the e-commerce, analytics, and customer service teams. Tina Blake has been promoted to creative director; SVP design, merchandising and brand image. She joined True Religion in 2022 and most recently served as senior vice president of men's and women's design and brand image. In this role, Blake will oversee the entire merchandising organization as well as her design and brand image leadership responsibilities. Athleticwear giant Nike has named Michael Gonda as chief communications officer, effective July 7. In this role, Gonda will oversee the company's global communications operations and strategy, including corporate and brand reputation, storytelling, issues management and employee engagement. Gonda previously held various leadership roles at McDonald's Corporation, most recently serving as its chief impact officer for North America. British boot brand Dr. Martens has named Carla Murphy as chief brand officer, effective July 1. In this role, Murphy will be responsible for the company's brand strategy and creative direction, as well as overseeing the company's global product, marketing and sustainability teams. She will report to former BSO and current CEO, Ije Nwokorie. Aspen, Colorado-based ski company Sport Obermeyer has announced a new leadership team in preparation for its 2026 rebranding effort. Former Mammut and X-Bionic leader Kris Kuster was named chief executive officer, Kalin Tegman has been promoted to director of sales, and Lilly McSwain has been named customer service manager. Reinforcing the brand's commitment to best-in-class client relationships and service. Founder Klaus Obermeyer will remain an active board member as the oldest living company president at 105 years old. Utah-based footwear brand Kizik has named former Nike exec Gareth Hosford as chief executive officer. In this role, he will work to scale innovation, reach and opportunities for the brand as it continues to transition from a DTC business model to an omni-channel effort. Hosford succeeds Monte Deere, who has held the role since 2019, will continue to serve on the board of Kizik (and its parent company, HandsFree Labs) as to advise on the company's licensing arm of the business. StockX has named Daniel De Jesus Krueger as vice president and head of creative. He will lead the global creative direction of the sneaker resale marketplace, encompassing brand design, imagery and storytelling. Krueger joins StockX from Fulwell Entertainment, an entertainment group founded by athlete LeBron James and sports marketer Maverick Carter, formerly known as SpringHill Company. California surf-and-skate retailer Pacsun has named Rachel Donahue as vice president of human resources. She will oversee all aspects of human resources at Pacsun, including talent development, organizational effectiveness and employee engagement. Donahue brings over two decades of experience leading people strategy across retail and fashion brands. She most recently served as Aritzia's vice president, people and culture, responsible for talent management, executive development and shaping the company culture. Her prior experience includes senior HR roles at Saks, Tory Burch and Macy's. Autonomous delivery network Arrive AI has appointed Laurie Tucker to its board of directors. Tucker, a former senior vice president of marketing at FedEx and an experienced board member, will serve as head of Arrive AI's compensation committee.
USA Today
an hour ago
- USA Today
4 Social Security changes Washington could make to prevent benefit cuts
4 Social Security changes Washington could make to prevent benefit cuts Show Caption Hide Caption Biden criticizes Trump administration's handling of Social Security Social Security overhaul sparks criticism from Biden over service disruptions, layoffs and automation as Trump defends changes as efficiency. Straight Arrow News Social Security is an important source of income for millions of Americans, but the program has a serious financial problem. Costs have increased faster than revenues in recent years because the aging population is growing more quickly than the working population. As a result, the trust fund, the financial account that pays benefits, is on track to be depleted within a decade. Specifically, the Congressional Budget Office estimates the trust fund will be exhausted in 2034. That would eliminate one source of revenue (i.e., interest earned on trust fund reserves), and the remaining tax revenues would only cover 77% of scheduled payments. That means a 23% benefit cut would be necessary in 2035. Fortunately, the lawmakers in Washington have several years to find a better solution. Here are four Social Security changes that could prevent deep, across-the-board benefit cuts. 1. Apply the Social Security payroll tax to income above $400,000 Social Security is primarily funded by a dedicated payroll tax, which takes 6.2% of wages from workers and employers. But some income is exempt from the payroll tax. Specifically, the maximum taxable earnings limit is $176,100 in 2025. Income above that threshold is not taxed by Social Security. Importantly, the Social Security program is projected to run a $23 trillion deficit over the next 75 years as it's strained by shifting demographics. But the deficit could be slashed by applying the payroll tax to more income. For instance, including income above $400,000 would eliminate 60% of the 75-year funding shortfall, says the University of Maryland. 2. Gradually increase the Social Security payroll tax rate to 6.5% over six years Under current law, the Social Security payroll tax rate is 6.2% for workers and their employers. But gradually raising that figure would eliminate a portion of the long-term deficit. For example, increasing thetax rate by 0.05% annually over a six-year period would eliminate 15% of the 75-year funding shortfall, according to the University of Maryland. Now that I've discussed two possible changes, let's step back and look at the big picture. There are basically three ways to resolve Social Security's financial problems: (1) increase revenue, (2) reduce costs or (3) some combination of the first two options. The changes discussed so far would increase revenue, but the next two changes would cut benefits. However, they are more subtle cuts than the 23% across-the-board reduction that would follow trust fund depletion. 3. Gradually increase full retirement age to 68 by 2033 Workers are eligible for retirement benefits at age 62, but they are not entitled to their full benefit — also called the primary insurance amount (PIA) — until full retirement age (FRA). Anyone that claims before full retirement age receives a smaller payout, meaning they get less than 100% of their PIA. FRA is currently defined as 67 years old for workers born in 1960 or later, but raising the figure would reduce the long-term deficit. For instance, increasing FRA to 68 years old by 2033, meaning it would apply to workers born in 1965 or later, would eliminate 15% of the 75-year funding shortfall, according to the University of Maryland. 4. Reduce benefits for retired workers with income in the top 20% Social Security benefits are determined as percentages of two bend points. Specifically, income from the 35 highest-paid years of work is adjusted for inflation and converted to a monthly figure called the average indexed monthly earnings (AIME) amount. The AIME is then run through a formula that uses two bend points to determine the PIA for each worker. Modifying the second (highest) bend point would eliminate a portion of the long-term deficit by reducing benefits for high earners. For instance, the University of Maryland estimates that reducing benefits for individuals with income in the top 20% could reduce the 75-year funding deficit by 11%. Here's the big picture: The four changes I've discussed would eliminate 101% of Social Security's $23 trillion funding shortfall, which would prevent across-the-board benefit cuts in 2035. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. The $23,760 Social Security bonus most retirees completely overlook Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets"could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. JoinStock Advisorto learn more about these strategies. View the "Social Security secrets" »
CNBC
2 hours ago
- CNBC
China's grueling ‘996' work culture is being debated by European startups — 7 founders and VCs on why they are resisting
The European startup scene was recently shaken by a LinkedIn debate with some venture capitalists applying pressure on founders to embrace a culture of overwork to compete on a global stage. The "996" work culture reigns supreme in China and has been adopted by various tech giants including Jack Ma's Alibaba and Bytedance's TikTok, but the system has also been the subject of much protest in recent years. Tech workers in Europe told CNBC in 2021 that they're turning down job offers, rejecting interviews, or even quitting their roles, upon learning of TikTok's 996 work culture. Sebastian Becker, general partner at Switzerland-based VC company Redalpine added to the debate on LinkedIn by addressing the new German Chancellor Friedrich Merz, who has called for removal of the legal work limit of eight hours per day in Germany in a bid to increase efficiency, while keeping the 40-hour week. Becker said Merz' proposal doesn't go far enough, as "40 hours a week won't cut it." "In Silicon Valley, 60-70 hour weeks aren't the exception — they even have a term for it: 996 — 9am to 9pm, six days a week... we can have the same amount of smart, ambitious people, but if we're consistently being outworked, we won't win," Becker said. Index Ventures Partner Martin Mignot in London explained on LinkedIn that 996 originated in China and has "quietly become the norm" at startups internationally. Part of the reason behind this most recent push is that there's a persistent view that Europe's tech and startup scene is lagging behind the U.S. and China, both of which have produced tech giants and are known for intense work cultures. However, Suranga Chandratillake, general partner at Balderton Capital, told CNBC Make It that these views are outdated as Europe has produced deca-corns in recent years— companies worth more than $10 billion including Klarna, Revolut, Wise, and The continent has yet to produce a trillion-dollar tech firm like Nvidia. "The European tech market and ecosystem is keeping up today with the U.S. and Asia... back in the 1980s the European tech scene was behind the tech scene on the West Coast of the US, but that's not the case now," Chandratillake said in an interview. The calls for Europe to adopt the 996 work culture sparked a wave of backlash. CNBC spoke with seven European startup founders and VCs on why they disagree. The obsession with China's 996 or Silicon Valley's 24/7 work culture emerges from a glorification of hustle culture in the startup landscape, founders and VCs said. "It's about a fetishization of overwork rather than smart work…it's a myth," Chandratillake said. "California is very good at telling stories and there's a lot of mythmaking around the concept of what startups look like…. there is hard work involved but if you really spend time in that ecosystem, you will discover that lots of people work really hard, but there are also periods where they don't work." Nina Mohanty, a Silicon Valley native and founder of London-based Bloom Money, said there are actually "lasting effects and unintended consequences" to adopting an aggressive overwork culture, "You only have to think about Revolut and the culture that they have is probably the closest that we've seen in Europe to the 996 culture, and they struggled," Mohanty told CNBC. "Their churn rate was incredibly high within their team, and they even struggled to get their banking license, and their culture was actually cited as one of those reasons." For its part, Revolut told CNBC it operates in a "high-growth, high-performance environment." "In line with this, we've evolved how we support our people: through value-based behaviours, structured development, and a culture that's collaborative, challenging, and built for scale," a spokesperson from Revolut said. Noa Khamallah, general partner at Don't Quit Ventures, pointed out that there's "no need for 996" and that these values are often at odds with both the European mindset and regulation. "Europe's most successful companies — from Spotify to SAP to ASML — didn't achieve dominance through overwork but through sustainable innovation cultures," Khamallah said. He offered the examples of Silicon Valley's Uber and Meta, both companies that expanded into Europe and faced massive regulatory pushback. "These examples reveal how Silicon Valley's 'move fast and break things' ethos often breaks against European values around worker rights, privacy, and sustainable business practices," Khamallah said. An always-on culture decreases retention and creates a revolving door of talent, Sarah Wernér, co-founder of Husmus, told CNBC. "Overwork today is a productivity crisis tomorrow," Wernér said. "Personally, I hope my competitors are doing 996. It makes poaching great people a lot easier when they decide they've had enough." Dama Sathianathan, a senior partner at Bethnal Green Ventures said it's unhelpful to "prescribe" working hours, especially if it means putting workers' wellbeing at risk. "Optimizing labor doesn't always lead to better productivity, or help with differentiating from other companies long-term, if you've made work devoid of meaning," Sathianathan explained. Meanwhile, the youngest generation at work are less likely to put up with overworking and tend to prioritize work-life balance. Jas Schembri-Stothart, founder of Luna, a health and wellness app for teen girls, said 996 will drive young talent away from European startups. "People may tolerate overwork for a while, but eventually it leads to churn and even resentment, especially with Gen Z and younger millennials, there's much less tolerance for toxic hustle cultures," Schembri-Stothart said. Founders insist that instead of increasing working hours, startups need more funding and resources to position themselves as key players in the global startup scene. "What Europe really needs isn't more hustle-porn it's more aggressive funding," Wernér said. "With the right level of capital, our startups can hire enough talent to work intensely without breaking themselves. If a team of 10 is burning out to keep up with a 50-person U.S. VC or Chinese government-backed startup, the problem isn't their stamina, it's their cap table." In fact, since 2015 Europe's tech startups have missed out on nearly $375 billion in growth-stage funding, with founders losing out on a potential $300 billion in European investments, according to Atomico's State of European Tech report published in 2024. Additionally, one in two companies raising funding turn to the U.S. for capital rather than Europe. "What European startups really need is access to the right resources — funding, talent, and support — to grow, innovate quickly, and scale effectively," Schembri-Stothart said. "The venture landscape in the U.S. is a different ballgame altogether, and it's tough to compete with that without a stronger ecosystem here. Founders acknowledged that the startup life requires intense hustle and grind, but it's a more nuanced picture than just adopting 996. Timothy Armoo, co-founder and former CEO of Fanbytes, an influencer marketing firm that he sold for eight figures in 2022, told CNBC that he's a "huge supporter" of this new 996 push, but admitted that timing is key. "I think there are seasons but I also think that if you are a first-time founder or if your primary goal is basically wealth creation, I'll be very candid, if this is your season, and you're stepping back, then you're not serious about it," he said. Armoo said there are no excuses because AI allows entrepreneurs to be maximally efficient as it can reduce certain time-consuming manual tasks. Meanwhile, Bloom Money's Mohanty, said that when she's not sleeping, she's working. "I think early stage teams tend to almost unknowingly or without actually saying it, work the 996 life, because when you are early stage, you just have to hustle harder with less, and especially if you're the founder, you're always on and always working, and it can be very, very difficult to turn off." Schembri-Stothart draws the line at exploiting her team to produce more work. "It's my choice to work at the weekend, but I'd never expect that on my team, it's definitely not glorified to push your teams to breaking point. Silicon Valley tech exec Dion McKenzie warned that expectations of a 996 culture could make VC funding even more out of reach for early-stage startups. "My fear is that as these new norms and trends become the status quo and benchmarks for getting funded, it excludes so many brilliant founders that value their mental health and/or can't commit to a 996 due to caregiving responsibilities or being a parent," Mckenzie said.
