Mortgage rates have hovered near all-time lows for the last several years, homeowners across Texas have seen healthy appreciation in their investments, and the housing market continues to thrive.

But not for everyone.

Unfortunately, the American Dream of homeownership eludes many Texans; in fact, the homeownership rate in Texas, according to 2006 U.S. Census data, is 66%, compared to the national average of 68.8%. Put another way, Texas ranks No. 42 out of 50 states in homeownership. We’ve still got a ways to go here in the Lone Star state.

Since 2002, June has been designated National Homeownership Month, with the goal of increasing homeownership – particularly minority homeownership – in the U.S. by 5.5 million by the end of the decade.

Not just buying any home, but one you can afford
Homeownership itself isn’t a be-all, end-all. It’s not about simply buying a home, but it is about buying a home that you can afford – one that not only provides safe, sturdy shelter but that also meets your financial needs.

Low interest rates, in conjunction with eager lenders who made qualifying for new loans much easier, helped push statewide homeownership levels up from 65.5% in 2004 to 66% in 2006. During that two-year span, we actually went from 45th in the nation in homeownership to 42nd. So we’re headed in the right direction. Most Texas cities reported record sales and price levels, and the overall number of first-time homebuyers increased, confirms the Real Estate Center at Texas A&M University.
But many of those loans came with high prices, like adjustable rate mortgages (ARMs) with interest rates that skyrocketed after just a few years. Consequently, mortgage payments have become harder to pay for some homeowners, contributing to the alarming foreclosure rate in our state.

Texas REALTORS® helping Texans
There’s no doubt that homeownership offers significant advantages for consumers, including the ability to deduct mortgage interest and local and state property taxes from federal income taxes. But for many, it’s the concept of owning their home that’s most important.

Texas REALTORS® understand that desire and, long before 2002, have been doing what they can to help Texans realize the dream of owning a home. For example, Texas REALTORS® contributed more than $140,000 and many days to a Habitat for Humanity project in southeast Texas to help two families recover from the devastation left by Hurricane Rita. On Mother’s Day of this year, two moms in Port Arthur and their families got the keys to their new homes.

Since 2005, the Texas Association of REALTORS® (TAR) has partnered with the Texas Department of Housing & Community Affairs, Texas Veterans Land Board, and Fannie Mae on United Texas: Housing Initiatives That Work – a massive educational outreach that trains Texas REALTORS® on how to help first-time homebuyers obtain low-cost mortgage financing. This program is all about helping more Texans become proud first-time homeowners, putting them on the path to building equity and improving their quality of life for years to come.

National homeownership initiatives
REALTORS® have also been helping at the national level, launching programs specifically geared to helping first-time homebuyers. For example, the National Association of REALTORS® Housing Opportunity Program helps REALTORS® and REALTOR® associations identify, develop, advocate for, and promote business opportunities, programs, products, and resources that expand housing availability.

There’s also the At Home with Diversity program, a national course and initiative launched nine years ago that educates REALTORS® about being sensitive to and aggressive in meeting the homeownership needs of a diverse society. Designed in conjunction with the national fair housing initiative, the course gives REALTORS® the tools they need to serve culturally diverse homebuyers and sellers.

Another unique initiative is the Home From Work program, which addresses the issue of rising housing costs – creating problems for those who can’t afford to live close to their jobs. This educational program teaches REALTORS® how to promote workforce housing initiatives at the grassroots level, and to work with public and private sector employers to establish employer assisted housing (EAH) benefits.

In the end, it’s all about making sure there are ample housing opportunities for everyone – and having the right information and tools to make it happen. Not just during National Homeownership Month in June but year-round.