Home ownership adds to the economy in two ways. It shields homeowners from rent inflation and it builds real wealth in the form of equity . When property values rise, homeowners can tap their home equity for cash. And that's important for economic growth, because consumer spending accounts for two-thirds of the U.S. economy. Federal Reserve Chairman Alan Greenspan told the mortgage industry at a banking conference that it needs to encourage young people to buy homes so they can start building wealth.
Figures show that about a sixth of the wealth effect comes from equity drawn from existing homes.
Almost half of the cash homeowners got by borrowing against their increased property value comes from refinancing or home-equity loans. A significant amount of that is spent on consumer goods, especially big-ticket items. Survey reveals the perfect real estate agent Online homesellers and homebuyers were recently asked to pick the most important attributes of a real estate agent and to identify a celebrity or historical figure who best exemplifies that attribute. Schools are one of the most important things to consider when buying a home. The U.S. unemployment rate held steady at 4 percent in December, while job growth fell to the lowest pace in eight years.