First time homebuyer demand climbed to its highest level since 2000 during the third quarter, according to the First-Time Homebuyer Market Report from Genworth Mortgage Insurance. First-time buyers purchased 601,000 single-family homes between July and September – up from 567,000 during the same period last year.
The current demand for housing from first-timers pushed the share of homes purchased by this group to 40 percent of all homes sold and 56 percent of all purchase mortgages financed. Exorbitant rent prices nationwide are driving more people to make the transition from renter to buyer.
Seventy-eight percent of first-time homebuyers used a low down-payment program last quarter, a five percent increase from 2016. FHA loans, backed by the U.S. Department of Housing and Urban Development allow borrowers to put as little as 3.5 percent down.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4 percent while 15-year rates are near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.