Despite the turmoil of the COVID-19 pandemic, income and savings for the median American household are in better shape today than before the pandemic. On average, American households received more money and spent less during the first two years of the pandemic. As a result, household savings reached record highs in 2021.
More money in their pockets meant more Americans could buy a home, at least early in the pandemic. The most recent Census data shows that homeownership rose to 67.9% in the second quarter of 2020. That was the highest rate since 2008.
Since then, house prices continued to rise and mortgage interest rates grew, as well. This can make the typical method of buying a home—monthly payments on a 30-year fixed-rate mortgage—more challenging even after taking rising incomes into account.
