The mortgage world is full of differing information this week, or really, perhaps it’s just settling into a stable path. I’ll provide you information on first-time homebuyers, charts on housing trends and update on rates – so make of it what you will. ‘s First, according to an annual survey conducted by the National Association of Realtors, our real estate market is experiencing fewer first-time home buyers (FTHB’s) currently than any time since 1987. Historically, the group’s annual survey showed that four (4) in ten(10) homebuyers were purchasing for the first time. Now the percentage has dropped to 33 percent (33%). The article went on to note that the median age of first-time home buyers was 31 and their median income was $68,300. Sixty percent (60%) were married couples. It was cited that most young adults are having a harder time scraping together the down payment, since they are burdened with student loans and rising rents, and 26% receive a gift from a friend or relative (Nov. 3, 2014, Oregonlive.com). None of this comes as a surprise, but it is good to have it identified.
However, on the flip side, recent charts (shown in the attachment) indicated that we are experiencing the highest new home sales in six (6) years! So, we can safely say it is not FTHB’s purchasing those new homes – so list those homes, have you clients purchase a new one and send them to work with me at Aspire Mortgage!! Lastly, rates have slowly increased from the lowest point two weeks ago. However, any mortgage lender would say that these rates are pretty steady and still incredibly low, hovering around 4.0-4.125%. So, at least the second or third time home buyer is getting a great new house at an incredible rate!!