Homebuyers are trying to get into the housing market before it gets too hot. According to Freddie Mac, first-time buyers accounted for almost half of all new mortgages in the first quarter of 2018. This was their biggest quarterly share in more than five years.
Millennials were the main drivers behind the heightened share of first-time buyer mortgages. This young generation is pushing hard for homeownership, despite mounting obstacles like student debt, high home prices, rising mortgage rates, and dwindling inventory.
- First-time buyers accounted for about 46% of new mortgages in Q1 2018
- The median age of first-time buyers is 32 in the U.S.
- Young buyers are acting fast before home prices and mortgage rates get too high
“This is a millennial-driven rise,” Freddie Mac Chief Economist Sam Khater told Bloomberg in a phone interview.
“You’ve got a strong economy that’s helping, along with the appetite of the financial market to invest in mortgages,” he added.
Despite numerous stumbling blocks on the path to homeownership, such as student debt, scarce housing inventory and soaring home prices, first-time homebuyers (the median age of the first-time homebuyer is 32, according to the National Association of Realtors) made a mad dash for mortgages in the first quarter.
View the original article at Housing Wire