Category: Housing Market (Page 1 of 38)

Why Homeownership Is Still Worth It—Even Beyond the Finances

July 14, 2025 / Tom Bonetto / 0 Comments

In today’s market, many buyers are asking: “Is homeownership still worth it?” With rising costs and economic uncertainty, it’s a fair question.

But let’s pause for a moment—because homeownership has never been just about the money. In fact, recent studies show that the emotional, mental, and lifestyle benefits of owning a home are among the top reasons people choose to buy.

grayscale of man woman and dog on window

From mental health benefits to stronger communities, homeownership offers more than just a return on investment—it offers a better quality of life.

Here’s what the research says—and why it still makes sense to consider homeownership, even in a complex market.

Homeownership Improves Mental Well-being

A study from Habitat for Humanity found that 57% of homeowners report feeling more secure, stable, and happier in their lives than when they were renting.

According to a survey from the National Association of Realtors (NAR), 93% of homeowners say owning a home makes them feel proud.

The Journal of Epidemiology & Community Health reported that homeowners experience lower levels of psychological distress compared to renters.

When you own, your home isn’t just a space—it becomes a place of safety, peace, and personal identity. That matters, especially in times of uncertainty.

You Have Full Creative Control

Homeownership means freedom. Want to paint your kitchen teal? Go for it. Need to build a nursery or create a meditation space? You can. According to a Bank of America Homebuyer Insights Report:

74% of homeowners say they value “having control over their living space” as one of their top reasons for buying.
This same survey found that renters ranked “freedom to customize” as a top motivator for wanting to buy.

That ability to express yourself and shape your space fosters deeper satisfaction and comfort—something many renters say they’re missing.

Privacy and Peace Go Hand in Hand

When you own your home, you often gain more personal space, more privacy, and less exposure to external disruptions (no more surprise maintenance calls or upstairs neighbors at 3 a.m.).

According to the Urban Institute, one of the biggest complaints among renters is lack of privacy and unpredictable disruptions—key stressors that impact daily life.

Owning your home allows you to create a stable, peaceful environment tailored to your needs—and that affects everything from sleep quality to productivity.

You Become Part of a Community

welcome to our home print brown wooden wall decor

When you buy, you’re not just investing in a house—you’re planting roots. A Pew Research Center study shows:

Homeowners are more likely to volunteer, vote in local elections, and engage with their neighbors.
Communities with higher homeownership rates tend to have lower crime rates and more stable school systems.
This sense of belonging and connection to a neighborhood is something that can’t be measured in dollars—but it adds lasting value to your life.

You Gain a Deep Sense of Accomplishment

Finally, homeownership comes with an emotional milestone: the feeling of “I did this.”

According to Realtor.com, first-time buyers describe owning a home as one of the most rewarding life experiences—comparable to graduating college or getting their first job.

It’s a personal victory. It represents hard work, resilience, and the beginning of a new chapter—something renting often doesn’t offer in the same way.

Final Thoughts: Why It’s Still Worth It

Yes, it takes patience and strategy to buy a home in today’s market. But the non-financial rewards—from emotional wellbeing to life flexibility—remain stronger than ever.

In a world full of uncertainty, a home provides grounding, purpose, and peace of mind.

Want to talk about whether homeownership makes sense for your life—not just your finances?

Let’s connect

I’m here to help you explore your options and take the next step with confidence.

Lending Coach Podcast – 2025 Mid Year Real Estate and Mortgage Forecast Review

July 7, 2025 / Tom Bonetto / 0 Comments

Well, 2025 is past the halfway point, so how does my original forecast look relative to what’s transpired in the real estate and mortgage world?

And what can we expect moving forward into the 2nd half of 2025?

I’d invite you take a listen!

Here’s the link:

Specific Podcast Timestamps:

0:34 – Introduction
2:35 – Interest Rates So Far in 2025 and Real Estate Activity
10:30 – The Fed and Reliable Data – Inflation and Employment
19:50 – US Debt and Inflation
22:56 – Re-visiting January’s Forecast – How Did We Do?
39:40 – What Can We Expect in Mortgage Rates for the 2^nd Half of 2025
40:20 – Can Rates Get to the Low 6% Range? What Might Happen in Real Estate?
41:20 – Pent-up Demand and Home Prices/Buying Opportunities
46:25 – Final Thoughts on the Forecast

I hope you find it interesting, and feel free to reach out directly to me to discuss it further.

As always, you can set up an appointment with me here…

Why the Housing Market Isn’t Crashing in 2025

June 16, 2025 / Tom Bonetto

With rising home prices and fluctuating mortgage rates, it’s understandable that some are wondering whether a housing market crash is on the horizon. The good news…

a person giving a bundle of keys to another person

Multiple key indicators show that today’s market is fundamentally different—and more stable—than what we saw in 2008.

Discover why the housing market isn’t crashing in 2025—and why now might be a smart time to buy.

Lending Standards Are Much Stronger

One of the biggest reasons for the 2008 crash was irresponsible lending. Today, the average loan-to-value (LTV) ratio is around 28%, compared to 55% in 2008.

That means today’s homeowners have far more equity, which reduces their financial risk and helps maintain market stability.

Risky Loans Are a Thing of the Past

Loans that contributed to the previous crash—like no-document or stated-income loans—are rarely used in today’s lending environment.

And if they are, they typically require large down payments, which keeps borrowers better protected and less likely to default.

Homeowner Equity Remains Strong

If a homeowner today encounters financial hardship, odds are they can still sell their home and walk away with equity in hand.

That’s a big difference from the Great Recession, when many owners were underwater on their mortgages. Equity equals options—and stability.

Most Homeowners Have Locked in Low Rates

Many current homeowners have locked in historically low mortgage rates, and that’s keeping inventory low.

orange model house among black miniatures

With fewer homes going up for sale and continued buyer demand, home prices are being supported, not pressured downward.

The Bottom Line

Today’s housing market is built on a stronger foundation. Tight lending standards, stable equity, and healthy demand are keeping things balanced.

While no market is entirely immune to change, all signs point to resilience—not a crash.

Ready to Make Your Move?

If you’ve been waiting on the sidelines or worried about “what ifs,” now’s a great time to get expert insight.

Reach out to me and let’s explore your options, understand what you qualify for, and put together a plan that works for your goals and budget.

A Game Changer for Borrowers with Limited Down Payment Options – The HOPER FHA Mortgage

June 2, 2025 / Tom Bonetto

I have a new mortgage product available that can give up to $13,000 in down payment or closing funds for FHA borrowers.

Best of all, it isn’t a down payment assistance program, it’s actual earned income that is used for qualification purposes and can be utilized any way the borrower would like.

shopping cart with money on top of a laptop

HOPER allows homebuyers to earn up to $13,000 (3.5% of the home purchase price) toward the home purchase—with no repayment, no liens, and an interest rate that’s 1%-2% lower than standard down payment assistance (DPA) options.

Unlike standard DPAs, which often come with higher interest rates and restrictions, HOPER gives buyers real financial flexibility.

Additionally, homebuyers qualify for $10,000-$12,000 in tax credits on average within the first year, allowing them to replenish their savings to create an emergency fund. This financial boost can help set them up for long-term success as a homeowner.

Click here for the link to view a video of the program:

Who is HOPER, and why are they paying FHA homebuyers?

HOPER is a socially-innovative research organization, studying the positive impact that two cash inflows —up to $13,000 at closing and $10,000-$12,000 within a year after closing—along with financial mentorship has on loan performance. Their goal is to prove, through real-world data, that:

Savings rates go up
Default rates go down

To conduct this research, they pay FHA homebuyers for their participation, much like a second job.

How can borrowers use the 3.5% up to $13,000 from HOPER?

This isn’t a loan—it’s earned income, meaning borrowers have full control over how they use it:

Down payment & closing costs – Reduce their upfront cash needed to close.
Interest rate buy-down – Lower their monthly mortgage payment.
Paying off high-interest debt – Improve their overall financial standing.
Savings – Strengthen their emergency fund.

Why would a borrower choose the HOPER program when buying a home?

Here’s why HOPER is a game-changer for FHA homebuyers:

Receive up to $25,000 in financial support—$13,000 upfront + $10,000-$12,000 in tax credits.
Lower monthly costs—Reduce or eliminate their electric bill, protect yourself from rising utility costs.
Better loan terms—No liens, no repayment requirements, lower interest rates than DPAs.
Flexibility—Use their funds strategically to reduce debt, cover costs, or save.

A Real Example

What is required to participate in this project?

1. Buyers are to complete an online financial education course before buying their home (4-6 hours). This equips them with smart money habits and unlocks the 3.5% of the purchase price up to $13K, which is deposited into their savings club account to be used at closing.

2. Sign up for an online financial mentorship course (to be completed within one year of purchasing your home). This prepares them to make wise financial decisions with the $10,000-$12,000 tax credit they will receive, ensuring they build savings instead of spending it.

3. Undergo an energy assessment on the home they are buying. If solar can offset most of their expected electricity use, your home qualifies for the program.

Why is solar a required component of the program?

HOPER’s research focuses on reducing loan default risk. The #1 reason homeowners’ default is a lack of savings, especially in the first five years of purchasing the home.

Many new homeowners report having less than $1,000 in liquid savings, meaning any unexpected expense—a job loss, medical emergency, or car repair—can quickly put them at risk of missing mortgage payments.

man wearing safety glasses and gloves holding solar panels on the roof

Here’s how solar helps:

• Immediate savings boost: Home buyers receive a 30% tax credit for their solar system, averaging $10,000-$12,000, which can be used to build an emergency fund. This equates to roughly 5-6 months of mortgage payments, providing a financial safety net in the crucial early years of home ownership.

• Long-term affordability: Their electric bill is typically the second-largest home expense after the mortgage. By generating most of their electricity from solar, you lock in energy savings and protect yourself from rising utility rates over time. This makes home ownership more sustainable, reducing the risk of financial strain in the future.

How is the solar paid for?

FHA has made it seamless to include the cost of installing solar directly into your mortgage. This means:

The solar system is fully paid for on day one—no separate loan, no extra payments.
The cost is simply rolled into your mortgage, so you own the system outright.
You still benefit from solar incentives, including tax

What will happen to the monthly mortgage payment?

The borrower’s total housing expenses (mortgage + utilities) will remain roughly the same whether they participate in the HOPER program or not.

For example: if adding solar increases the mortgage by $200/month, their electricity bill will typically decrease by roughly the same amount, keeping the overall monthly costs stable.

Who installs the solar?

To ensure compliance with FHA guidelines and timelines, AHA (Attainable Housing Advocates) will get the buyer an energy assessment with a state-approved solar installer.

Once their home’s energy assessment is completed, AHA will provide a solar quote and breakdown of HOPER benefits, allowing them to make an informed decision.

In Conclusion

Do reach out to me for more on this incredible opportunity. As a reminder, this is not a down payment assistance program, it’s earned income that can be utilized for a down payment or closing costs.

Finally, the installed solar system is OWNED BY THE HOMEOWNER – there is no lien on the property whatsoever, so selling the home down the road becomes much easier.

Why Home Values Might Surprise You During a Recession

May 26, 2025 / Tom Bonetto

the word recession spelled out with scrabble letters

With whispers of an impending recession, many homeowners and prospective buyers are bracing for a potential hit to home values. It’s a natural concern—economic downturns often bring visions of plummeting markets and financial uncertainty.

But what if the data tells a different story?

potted succulent plants on the bookshelf

Contrary to popular belief, home values have historically performed remarkably well through the vast majority of recessions.

Let’s dive into why this counterintuitive trend holds true and what it means for today’s housing market.

The Recession-Home Value Myth

When we think of recessions, we often picture widespread economic turmoil: job losses, stock market dips, and declining asset values. It’s easy to assume that real estate, one of the largest investments for most households, would take a significant hit.

After all, if people are tightening their belts, wouldn’t fewer buyers mean lower home prices? Not necessarily:

As you can see, the data paints a surprising picture.

According to the graph above, home values have not only remained stable but often appreciated during most recessionary periods.

This challenges the conventional wisdom and prompts a closer look at the factors driving this resilience.

Why Do Home Values Hold Up?

Several key dynamics help explain why home values tend to weather recessions better than expected:

Limited Housing Supply: During recessions, home construction often slows as builders pull back due to economic uncertainty. At the same time, homeowners may delay selling, opting to stay put rather than risk entering a volatile market. This reduced supply can prop up home prices, even when demand softens.
Low Interest Rates: Recessions typically prompt central banks, like the Federal Reserve, to lower interest rates to stimulate the economy. Lower rates make mortgages more affordable, encouraging buyers to enter the market and supporting home price stability.
Real Estate as a Safe Haven: In times of economic uncertainty, investors and individuals often turn to tangible assets like real estate for stability. Unlike stocks or other volatile investments, homes provide both utility (a place to live) and long-term value, making them a preferred choice during turbulent times.
Sticky Home Prices: Home prices are famously “sticky” downward. Sellers are often reluctant to lower their asking prices significantly, especially if they’re not in financial distress. This resistance to price cuts can keep values elevated, even in a slower market.

What the Data Shows

The MBS Highway graph highlights several recessionary periods over recent decades, overlaying them with home price trends. In most cases, home values either continued to rise or experienced only modest declines before quickly recovering. For example:

Early 1990s Recession: Home prices remained relatively flat despite economic challenges and began appreciating soon after.
Early 2000s Recession: Home values continued their upward trajectory following the dot-com bust with minimal disruption.
Great Recession (2007-2009): This is the notable exception, where a housing bubble fueled by lax lending standards led to a sharp decline in home values. However, this was an outlier driven by unique circumstances, not a typical recessionary outcome.

Since the Great Recession, home prices have shown even greater resilience, supported by tighter lending standards, low inventory, and strong demand.

Even during the brief but sharp economic contraction of 2020 caused by the COVID-19 pandemic, home values surged as buyers sought more space and capitalized on historically low mortgage rates.

What This Means for Today

As fears of a 2025 recession loom, the historical data offers a dose of reassurance for homeowners and investors.

While no two recessions are identical, the evidence suggests that home values are more likely to hold steady—or even grow—than to crash.

Here’s why this matters:

For Homeowners: If you’re worried about your home’s value, history suggests you may not need to panic. Real estate’s long-term stability makes it a reliable asset, even in tough times.
For Buyers: A recession could bring opportunities, such as lower interest rates or slightly less competition in the market. If inventory remains tight, waiting too long might mean missing out on a good deal.
For Investors: Real estate remains a compelling hedge against economic uncertainty, offering both stability and potential for appreciation.

A Word of Caution

While the data is encouraging, it’s important to acknowledge that past performance isn’t a guaranteed predictor of future results.

The Great Recession showed that extraordinary circumstances—like a housing bubble—can lead to significant declines. Additionally, local market conditions vary widely.

Areas with strong job markets and limited inventory are likely to fare better than oversupplied or economically struggling regions.

Stay Informed, Stay Ahead

The housing market is complex, but understanding the data can help you make informed decisions. The graph from MBS Highway is a powerful reminder that recessions don’t automatically spell doom for home values.

By staying in the know, you can confidently navigate economic shifts.

Whether you’re a homeowner, buyer, or investor, keep an eye on key indicators like inventory levels, interest rates, and local market trends.

Reach out to me for more…

And don’t let recession fears cloud your judgment—real estate has repeatedly proven that it’s built to withstand the storm.