The homeownership rate in the U.S. fell to a 19-year low as rising prices and tight credit kept many first-time buyers out of the property market.
The share of Americans who own their homes was 64.7 percent in the second quarter, down from 64.8 percent in the previous three months, the Census Bureau said in a report today. The rate matched the level in the second quarter of 1995. Housing has become less affordable and more difficult to finance for entry-level buyers, even as mortgage rates have held close to record lows. First-time purchasers accounted for 28 percent of all sales of previously owned homes in June, compared with about 40 percent historically, according to the National Association of Realtors.
If the real estate sector pulls back, the value of AGNC's MBS portfolio will decline and if the Fed raises rates dividend paying stocks will decline. Today's pullback could also be "sell the news" by people who anticipated a bigger pop on earnings.