Tag Archives: First-time Buyers

A new analysis by the American Enterprise Institute gave insights into the factors that seemingly point towards a slump in housing. Here’s what it found.

A new report has found that credit easing has likely impacted the default risk for certain buyers. Here’s how.

One of the major casualties of a national housing market defined by continuously rising prices and over-tight inventory is the starter home, according to the latest Inventory and Price Watch report by Trulia. Starter homes “have become scarcer, pricier, smaller, ...

According to a new report, first-time homebuyers now make up 60 percent of all home purchases. On GSE loans, first-time buyers comprise 47 percent of loans, while on FHA loans, they account for 82 percent. The uptick is likely due to an improved economy, lower unemployment, rising income, and more new home construction

First-time buyers are often faced with several barriers to homeownership including student loans, down payment savings, and balancing multiple financial priorities, but they ultimately express a desire to own a home.

Total housing inventory increased by 3.2 percent to 2.29 million existing homes available for sale at the end of May, and is 1.8 percent higher than the 2.25 million homes for sale a year ago, the report says. Meanwhile, unsold inventory dropped down to a 5.1-month supply at the current sales pace for May, down from 5.2 months in April.

Risk layering is largely responsible for the increase in risk on mortgage loans taken out by first-time buyers, according to AEI. Seventy percent of first-time mortgage buyers in April 2015 had a combined LTV ratio of 95 percent or more and 97 percent of them had a 30-year term. Without substantial home price appreciation, the low down payment and slow amortization makes it likely that these first-time buyers will have very little equity in their homes for many years.

In its latest S&P/Case-Shiller Home Price Indices report, S&P Dow Jones Indices recorded an annual price increase of 10.8 percent among both the 10- and 20-city composites. Those figures compare to year-over-year increases of 12.6 percent and 12.4 percent, respectively. A consensus of economists surveyed by Econoday called for a gain of 11.4 percent in the 20-city index.

According to the latest Home Index Survey released by PulteGroup, Inc., out of more than 1,000 consumers surveyed in February, a combined 74 percent feel the economy is either better off (41 percent) or the same (33 percent) as it was this time last year.

More than 4 million first-time buyers want to enter the market, but they face some tough issues as market conditions aren't exactly favorable to new buyers. This conclusion came from the Zillow Housing Confidence Index (ZHCI), a new calculation released by Zillow and Pulsenomics.