Homeownership among first-time buyers grows

Applications for first-time homebuyers are on the rise, according to a new real estate market report.

The Mortgage Bankers Association released statistics covering the last few weeks and found that the volume of mortgage applications fell slightly overall, driven by a reduction in home mortgage refinancing.

It turns out that eligible homeowners who would reap the most benefits from a refinance are decreasing in number.

Home purchases are down as well, but not by much. The number of purchases decreased by about 1% week over week. Meanwhile, FHA loan applications jumped to 9.4%, up a full half percentage point from the previous week.

As a government-backed program, FHA loans are hugely popular with first-time homebuyers. More on that below.

In contrast to the first-time homebuyer trend, the number of homeowners who applied for a refinance fell by 5% over the same reporting period. A slight increase to the mortgage rate is also behind the decrease to this mortgage application category.

Today’s competitive market, which features rising home prices, is not getting in the way of the first-time homebuyer. Increasingly, they are relying on an FHA loan, which makes buying a home more affordable and accessible.

With an FHA loan, applicants enjoy far more lenient borrowing requirements. In many cases, the loans offer low down payments, flexible income requirements and credit score expectations that aren’t impossible to reach.

These buyer-friendly loan programs are backed by the Federal Housing Administration. This extra protection allows banks to take on more borrowers without taking on greater risk.

To learn more about how you can qualify for an FHA loan and join a growing number of first-time homebuyers, reach out to us today for details.

PMR is not affiliated with or an agency of the federal government.

Related News

How to refinance your home in 9 steps

How to refinance your home in 9 steps

Homeowners will take on a refinance mortgage loan to meet a variety of goals. A refinanced mortgage paves the way toward lower interest rates, lower monthly payments, or cash-out from the home’s current equity. Reaching this perk is a process, but the effort is worth...

How a 3-2-1 buydown mortgage may open doors in a complex market

How a 3-2-1 buydown mortgage may open doors in a complex market

The real estate market may not be as open for some as once before given the decreasing affordability factor. Rising home prices and interest rates are the major culprits. But there’s hope for future homebuyers through a 3-2-1 buydown mortgage loan. This loan program...

Three resources available to help homebuyers right now

Three resources available to help homebuyers right now

From the very start, the goal of Premier Mortgage Resources has been to help everyone achieve the dream of homeownership. Our passion to help others is matched by our top-tier mortgage professionals who put in a lot of work to achieve operational excellence at every...