First time homebuyers accounted for 38.9 percent of home sales during the few three weeks of May according to a recent survey. This is an increase from the 38.1 percent seen last month and a healthy increase over May 2015 figures of 37.2 percent. The survey was conducted by Campbell/Inside Mortgage Finance Housing Pulse.
April marked the fifth consecutive month in which the share of first-time homebuyers increased. Existing homeowners purchases accounted for 45.7 percent of sales and investors made up the remaining 15.4 percent of the market share.
Despite the increase, first time home buyers are still finding the current housing market challenging as prices rise and lending standards continue to remain stringent. FHA loans, popular among first time buyers as it only requires a 3.5 percent down payment, are easing some of the burden in this seller's market as prices continue to rise.
Today, conventional conforming no-point 30-year fixed mortgage rates average 3.625 percent while the 15-year rate is near 2.875 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.