Adam Constantine on MLK Jr.’s impact on housing equality

During the interview, Constantine explains why the industry needs to focus on evoking intentional change rather than launching lackluster initiatives.

Managing Credit Risk in 2021 and Beyond

Join a panel of industry experts as they provide an economic outlook for 2021 and a discussion with regional bankers on how they are managing credit risk over the next several years.

Amid record-high origination volumes, mortgage fraud risk is down

CoreLogic's recently released Mortgage Fraud Report is the industry standard for nationwide fraud monitoring and analysis. Read the findings here.

Empowering women to be financially great with Dava Davin

Women of Influence winner Dava Davin joins Girlfunds to discuss everything from her best financial tip to her advice on starting the home-buying process.

Mortgage

Home sales slowing – but not for first-time homebuyers

Now account for 55% of mortgages originated

Home sales are slowing as the year stretches on, however, that’s not true for one market segment – first time homebuyers.

In the second quarter of 2018, total single-family homes purchased by first-time homebuyers increased just 1% from last year to 572,000 homes, according to the First-Time Homebuyer Report from Genworth Mortgage Insurance.

The report aggregates all publicly available government data and proprietary mortgage industry data into one dataset.

But while home sales to first-time buyers slowed in the second quarter, the first half of the year saw 985,000 single-family homes purchased, the most during the first six months of a year since 2005.

“The market needs to put this quarter’s slowdown in first-time homebuyer purchase growth in context,” Genworth Chief Economist Tian Liu said. “Because while quarterly first-time homebuyer purchase growth was nominal, on a semi-annual basis this group recorded the most single-family home purchases since 2005.”

“That is impressive considering overall home sales declined by 2% during the second quarter, with unusually slow activity in June,” Liu said. “The decrease in home sales was driven by an increase in both interest rates and home prices that together raised monthly mortgage payments for first-time homebuyers by 12.6% year over year.”

Here are some of the stats the second-quarter first-time homebuyer report revealed:

 

Speak Visually. Create an infographic with Visme

Despite rising rates, a slowdown in new home construction and a drop in supply at every price point in the affordable rates or $150,000 to $300,000, homebuyers under 35 years of age increased their homeownership rate, the report showed.

“First-time homebuyers have a wide range of low down payment mortgage products today to help them become homeowners, accounting for 79% of all home purchase transactions,” Liu said.

“Over the past few years, conventional loans with mortgage insurance have become increasingly popular,” he said. “This quarter, for the first time ever, it became the largest source of credit to first-time homebuyers.”

Most Popular Articles

Prepare for the rise in mortgage rates

Economists offer their takes on how high mortgage rates will climb, how lenders will respond and what impact this will have on the housing market. HW+ Premium Content

Jan 18, 2021 By

Latest Articles

CFPB clarifies role of supervisory guidance

The Consumer Financial Protection Bureau issued a final rule Tuesday clarifying that supervisory guidance is not backed by the same force as law or regulation.

Jan 19, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please