An Expanding Dream

The American dream of owning a home is coming true for a record number of families. That is excellent news, especially because all groups are sharing in the increase. Record numbers of African Americans, Latinos and women bought houses, helping to fuel the boom.

Nationwide, a record 66% of households owned their homes in the third quarter of this year, according to the Census Bureau. The previous high was 65.8%, back in the third quarter of 1980. The rate fell to 63.5% in 1985 but then rose slowly, accelerating in recent years as the economy recovered and interest rates fell.

The robust home sales indicate consumers are confident enough in their jobs to assume mortgages. And usually the purchase of a new home leads to purchases of appliances and furnishings, which further help the economy.

Several initiatives by the Clinton ad- ministration and banks helped boost minority ownership by making homes more affordable. For instance, the Federal Housing Administration has cut mortgage premiums four times, greatly reducing closing costs. The proportion of minority households owning homes rose to a record 46% from 45.7%. Among Latinos the proportion was 43%, among African Americans 45.8% and for households headed by women 51.4%.

Though California is enjoying an economic rebound, high real estate prices in the state have kept home ownership about 10% below the national rate. But Orange County had one of the largest gains among metropolitan areas, rising four percentage points to 65.5%. Los Angeles County edged up 0.7% to 47.4%.

Owning a home is the largest step a family can take toward a stable middle-class life. The new figures are welcome indeed.