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More pain to come for first-time buyers

The rise in the US homeownership rate has stalled, driven by a drop in the proportion of under-35s that own their home. That’s down to higher mortgage rates reducing the number of first-time buyers (FTBs) that can afford to buy. Our forecast is for mortgage rates to stay above 6.0% until end-2025, a level that will keep homeownership out of reach for many in this age bracket.

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