"Younger renters who prefer to own are much more likely than their older counterparts to say that they are renting mainly to make themselves financially ready to own," according to the survey.

The majority of renters surveyed said that if they had trouble qualifying for a mortgage, they would take steps to improve their credit score or financial situation, or consider buying a less expensive home. Only a quarter of renters said that if they were denied a mortgage, they would stop pursuing a mortgage altogether.

The survey showed that renters believe home ownership is better than renting in terms of privacy, security, and for raising a family. Fifty-one percent of renters say that owning makes more sense than renting when comparing both the financial and lifestyle benefits, according to the survey.

"The strength of the economy, particularly job creation and real income growth, as well as the favorability of credit conditions should play significant roles in determining if and when many of these renters will see the fruit of their efforts to become home owners," says Sarah Shahdad, analyst of Economic & Strategic Research at Fannie Mae.

Source: "Renters pursue the American Dream of homeownership", HousingWire (June 6, 2013) as written in REALTOR Mag Friday, June 07, 2013

Mortgage rates are inching up, with the 30-year fixed-rate mortgage averaging 3.91 percent last week -- up from 3.3 percent in early May, according to mortgage giant Freddie Mac.

"It's unlikely that rates will ever be that low again," says Doug Duncan, Fannie Mae's chief economist.

The Fed has been keeping interest rates at record lows by buying up to $85 billion a month in Treasury bonds and mortgage-backed securities, which has helped bolster the housing market.

"Up until recently, expectations were that the Fed would begin to taper purchases of mortgage-backed securities and Treasury bonds late in 2013, but that time frame appears to have moved to September, possibly sooner," says Keith Gumbinger, vice president of HSH.com, a mortgage information company.

As the economy continues to gain traction, interest rates are expected to continue to increase, Gumbinger says, since low rates often are associated with a distressed economy.

But even if mortgage rates move up a percentage point or two, housing experts note that mortgage rates will still be low by historical standards.

"The 30-year [mortgage rate] hit a 37-year low in 2003 at 5.23 percent," Gumbinger says. "That was the previous low-watermark prior to this financial crisis, and it's likely we will move closer to that mark as we grind forward."

Source: "Why You Missed the Boat On Record-Low Mortgage Rates", CNNMoney (June 6, 2013) as written in REALTOR Mag Friday, June 11, 2013

The survey revealed the following top reasons why renters want to own:

• "Control over what you do with your living space": 84% of renters said this was their main desire for owning;
• "Having a sense of privacy and security": 80%
• "Having the best investment plan": 78%
• "Having a good place for family or to raise your children": 78%
• "Living in a nicer home": 71%
• "Building wealth": 70%
• "Saving for retirement": 69%

In the survey, renters identified the following reasons for why they are renting:

• "Living within your budget": 57%
• "Having less stress": 52%
• "Making the best decision given the current economic climate": 50%

Source: "Why It's True: You Should Own, Not Rent", TheStreet.com (June 11, 2013) as written in REALTOR Mag Friday, June 12, 2013

Read more at American Renters Getting Squeezed and What Renters Are Willing to Sacrifice for a Home