Homeownership Rate at New High

U.S. homeownership climbed to a new high late last year as low mortgage rates made buyers out of renters, a government report showed Tuesday.

The Census Bureau said 68.6% of homes were occupied by their owners in the fourth quarter of 2003, up slightly from a 68.3% homeownership rate in the fourth quarter of the previous year.

Economists said mortgage interest rates that slid to four-decade lows in June and hovered not much higher for the rest of the year put ownership within the reach of many renters. When interest rates slip, monthly mortgage payments become more affordable.

“It’s largely mortgage rates,” National Assn. of Homebuilders chief economist David Seiders said. “It’s certainly the excellent affordability conditions for home buying, particularly the second half of the year when mortgage rates were so low.”

The homeownership rate for all minorities reached a new high for the quarter and the entire year. President Bush has made increasing minority homeownership a policy priority.