First-time Buyers on the Rise
The good news? It appears the tide could finally be turning, even as prices this year continue to climb and mortgage rates have moved up from 3.95 percent at the start of the year to 4.55 percent (as of June 28).
Homebuyer Demand is Rising, First quarter mortgage data, first–time buyers represented 46 percent of 7its purchased loans, the largest share in recent history and up from 42 percent a year ago.
What's fueling the increase? The sheer size of the millennial generation, along with the robust job market and millennials doing “adulting” things like getting married and having babies, are leading to more sales to first–timers.
Looking ahead, there are reasons to be optimistic that more young adults will be diving into homeownership. The job market and economy continue to look healthy, there's substantial pent–up demand for increased household formation, and more millennials will enter the peak age of settling down, getting married and deciding to start a family – all indicators of stronger demand for home purchases.
But Where are the Homes? In last month's forecast, higher prices and mortgage rates pose as headwinds for the overall housing market, as do the stubbornly low supply levels that have led to slim pickings for home shoppers in most of the country in 2018.
While inventory conditions are expected to remain tight in the coming months, those thinking about buying their first home are fortunately seeing improved prospects when it comes to getting a mortgage.
Whether it's through low down payment programs like Home Possible® and HomeOne® (available later this month), or recognizing the creditworthiness of those self–employed, Freddie Mac is committed to reimaging the mortgage experience through responsible lending, improving access to credit and sustainable homeownership.
“People listing their homes for sale in higher numbers this April and May is good news for buyers, and good news for home sales.”
“But it’s still not enough to satisfy buyer demand, which means price increases will likely continue. ”
Are You Ready to Sell or Buy now is the Time, We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866.
#RealEstateForSale #Homeownership #UtahRealEstate #Millennial
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