When Mark and Valerie Bowman first saw the house, they didnt like it. However, it was a dark, rainy day. They viewed the house more favorably on their second visit, which they thought would be a waste of time. Despite cracked ceilings, the need for new paint, and a kitchen built in the 1990s, the Bowmans saw a potential to create a place they could call their own.

Beth Young purchased her condominium several years ago. She obtained a mortgage rate of 6.5 percent, a very good rate then. Recently, when interest rates dropped, Beth was considering refinancing her mortgage at a lower rate.

Matt and Peggy Zoran had been married for five years and were still living in an apartment. Several of their friends had purchased homes recently. However, Matt and Peggy were not sure they wanted to follow this example. Although they liked their friends homes and had viewed online videos of homes on the market, they also liked the freedom from maintenance responsibility they enjoyed as renters.

In todays economic and social environment, fewer young people (ages 2237) are buying homes due to marrying at an older age, having children later in life, and high levels of student debt. Obstacles encountered by these home buyers include high home prices, limited money for a down payment, a poor credit history, and not having a stable income. Home features that younger home shoppers are willing to give up to live in their ideal neighborhood include a garage, an updated kitchen, storage space, a yard, and an updated bathroom.

Requirements

R1. How could the Bowmans benefit from buying a home that needs improvements?

R2. How might Beth Young have found out when mortgage rates were at a level that would make refinancing her condominium more affordable?

R3. Although the Zorans had good reasons for continuing to rent, what factors might make it desirable to buy a home?

R4. Based on websites, apps, and other sources, what advice would you give young consumers (ages 2237) about home buying?