The American Enterprise Institute’s (AEI) International Center on Housing Risk has released a new installment of its National Housing Market Index (NHMI), examining the state of the market in the second half of 2017 and where it’s likely to go ...
Read More »What is Driving Risk Higher on First-Time Buyer Loans?
What led to risk of default on agency first-time buyer mortgages reaching a series high in April?
Read More »The Reemergence of First-time Home Buyers
First-time buyer volume rose significantly in March 2016, driven by continued labor market improvements, riskier mortgage lending, and historically low mortgage rates.
Read More »Agency First-Time Buyer Mortgage Risk Continues Upward Move
What is driving the increasing disparity in risk between Agency first-time buyer mortgage loans and repeat buyer mortgage loans?
Read More »Why Are Agency First-Time Buyer Mortgages Getting Riskier?
First-time buyer mortgages with a government guarantee were at a much higher risk of default than those taken out by repeat buyers. What factors are behind the disparity?
Read More »Why Are Agency Purchase Loans Becoming Even Riskier?
The riskiness of agency purchase loans has increased year-over-year every month since January 2014. What is driving the constant rise in risk?
Read More »Share of First-Time Buyers on Agency-Backed Loans Rises, But So Does Risk
The share has risen above previous year levels since April 2015, reflecting improvements within the labor market, riskier mortgage lending, and continuing low mortgage rates.
Read More »Agency Purchase Loans Become Riskier
Also according to AEI's July report, 71 percent of Agency purchase loans had down payments of 5 percent or less, and 25 percent of them had DTI ratios greater than the QM limit of 43 percent. The median FICO score for first-time buyers was 709, a bit below the median for all individuals in the United States.
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