More First-Time Homebuyers are Entering the Market

A recent report from Genworth indicated that, “First-time homebuyers should continue to play an important role in the housing market. While the first-time homebuyer market has grown by close to 40 percent since 2014, there are still 2.7 million missing first-time homebuyers. They represent vast, largely untapped opportunities for the housing industry over the coming years. Despite the headwinds of rising interest rates and low inventory in the housing market, first-time homebuyers are entering the market at the fastest pace in the first six months of 2018 than any year since 2005.”

“The Daily Shot: More First-Time Home Buyers Are Taking the Plunge.” The Wall Street Journal Online (September 4, 2018).

The Genworth report noted that, “A historically large first-time homebuyer market since 2016 suggests that a large number of young families are becoming homeowners. This is beginning to show in the rising homeownership rate among younger households. Even without any growth, the current size of the first-time homebuyer market is already very large—relative to the total number of households—which is helping to raise homeownership rates among younger households.”

The report added, “In the mortgage market, the expansion of the rst-time homebuyer market has restarted the growth in household mortgage debt, creating opportunities for mortgage lenders and investors.”

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