Ryan Flannery

First-time homebuyers fall, ‘desire to own’ jumps

Housing is recovering in sales and prices, but one segment is stubbornly weak and getting weaker. The share of first-time buyers fell to the lowest level in nearly three decades, just 32 percent of all purchases, according to the National Association of Realtors’ annual profile of buyers and sellers. Investors are not included in the survey.

At the same time, the share of buyers saying their primary reason for buying was the simple desire to own rose overall and most dramatically among first-time purchasers.

“There are several reasons why there should be more first-time buyers reaching the market, including persistently low mortgage rates, healthy job prospects for those college-educated, and the fact that renting is becoming more unaffordable in many areas,” said Lawrence Yun, the Realtors’ chief economist. “Unfortunately, there are just as many high hurdles slowing first-time buyers down. Increasing rents and home prices are impeding their ability to save for a down payment, there’s scarce inventory for new and existing-homes in their price range, and it’s still too difficult for some to get a mortgage.”

Read Full Article Here

(Via CNBC)

How will we know when the mortgage market has fully recovered?

Several concrete signs lately point to a broad-based housing recovery across the nation: Home sales are increasing, prices are rising, credit access is gradually easing and private capital is slowly coming back. But not everything is back to normal: credit availability is still very tight, delinquencies are still elevated and taxpayers still back the overwhelming majority of the mortgage market. With such contradictions and no single indicator of market health, how will we know when the market has recovered enough?…

Learn More Here (via Urban Institute)

Homebuyers are hitting record credit scores

New mortgages for purchasing homes are churning out at a fast clip, with the borrowers getting those loans having some of the highest credit scores ever. Because credit is favoring a smaller segment of borrowers, the result is that loan performance is arguably the best in history.

Purchase mortgage originations in the second quarter of this year were up 15 percent from a year ago, according to Black Knight Financial Services. June, the height of the spring sales season, saw the largest purchase loan volume since 2007, due to a high volume of sales.

As cash-heavy investors move out, mortgage-dependent borrowers are moving in. Cash sales made up about 30 percent of total home sales in July, the latest reading, down from 34 percent in July 2014. It is at the lowest level in nine years…

Learn More Here (via CNBC)

Page 2 of 212