Housing Market Appears Ready To Host First-Time Buyers

Housing Market Appears Ready To Host First-Time Buyers

The United States is nearly a decade removed from the onset of one of its worst recessions. However, in spite of its severity, a recovery seems inevitable. While not where experts would like it to be, the U.S. economy appears to be heading in the right direction. Equity is returning to the market, interest rates are still historically low, affordability is returning to prominent cities and the government is making moves to bolster the rebound. For all intents and purposes, the housing market is missing one key element: first-time buyer participation. As luck would have it, the housing market appears ready to host an entirely new generation of buyers.

For the better part of the last ten years, the housing market has essentially neglected younger generations. Whether it was strict underwritings resulting from the recession or stagnant wages preventing their ability to save up a down payment, first-time buyers have been unable to actively participate in the housing market for reasons beyond their control. However, as the recovery gains traction, the prospect of Millennial participation grows. Just last month, the Federal Housing Administration (FHA) reduced mortgage insurance premiums on those borrowers with low down payments. Alone, this move should convince many younger Americans to stop renting and start buying.

The following factors should promote more first-time buyers to actively participate in the market:

Down Payments

By the end of 2014, the average buyer was putting down 15.2 percent of the sales price. Just over a year earlier, the average buyer allocated 16 percent of the homes price to the down payment. However, while the average down payment has decreased over the course of a year, many first-time buyers can’t even come close to saving enough – especially with how high rents are.

Fortunately, actions have already been taken to make accommodating a down payment as manageable as possible. Fannie Mae and Freddie Mac, in addition to the FHA, have all taken steps to help first-time buyers find their place in the housing market. Perhaps most significantly, Fannie Mae began purchasing loans with down payments as low as 3 percent. As recently as December, Fannie Mae would only take loans with a down payment of 5 percent or more. A drop of just 2 percent should be more than enough to help younger Americans get off the fence. It might even make owning cheaper than renting in some areas of the country.

“I think it proves the point that the policymakers are trying to address, that first-time homebuyers have not been a big part of the recovery,” said Daren Blomquist, vice president at RealtyTrac in Irvine, California.

Lower Premiums

Again, the government has already taken steps towards improving the economy. Fannie Mae’s willingness to purchase loans with down payments as low as 3 percent demonstrates how important it is to gain the attention of younger Americans. That said, the FHA has reduced mortgage insurance premiums. Seeing as how anybody that does not put down at least 20 percent is required to purchase mortgage insurance, it is only logical to reduce the premium of said insurance. Borrowers are, therefore, required to pay just .85 percent of the mortgage balance in fees each year. While a .05 percent drop doesn’t seem like much, it could catch he attention of those that have been on the fence about buying a home. Moreover, homeowners should expect to save approximately $900 a year with the drop in mortgage insurance premiums.

Perhaps even more importantly, the National Association of Realtors (NAR) believes that the move will directly introduce up to 140,000 new buyers to the market. Such an influx would provide an incredible boost to the entire U.S. economy. It may be just what the market needs to finally gain traction for the recovery.

“I want to talk about helping more families afford their piece of the American dream, and that is owning their own home,” Obama said in a recent speech in Phoenix. The speech was just one of many that the president is using on his “economic stimulation” tour. “Buying a home’s always been about more than owning a roof and four walls. It’s about investing in savings and building a family and planting roots in a community,” Obama added.

Credit Availability

According to the Mortgage Credit Availability Index, credit availability has increased since the start of the year.

“Several new initiatives aimed at making mortgage credit more available and affordable to consumers were recently announced and resulted in a net loosening of credit over the month,” said Mike Fratantoni, Mortgage Bankers Association’s chief economist. “Fannie Mae and Freddie Mac announced new 97 percent LTV loan programs in December aimed at expanding access to conventional financing for new and well-qualified homebuyers. Additionally, FHA announced reductions in mortgage insurance premiums (MIP). Both of these announcements were designed to provide consumers with better access to mortgage credit.”

With credit availability expanding, younger buyers will see it become easier to get approval for a loan.

See more at: http://www.fortunebuilders.com/housing-market-appears-ready-to-host-first-time-buyers/


  1. read more says:

    Appreciating the time and energy you put into your site and in depth information you provide. It’s great to come across a blog every once in a while that isn’t the same old rehashed material. Great read! I’ve bookmarked your site and I’m adding your RSS feeds to my Google account.

  2. Here is the simplest and best assistance I have ever come across on this topic. Thank you for this very helpful blog post of yours. Additionally, I enjoy writing articles which has a personal tone incorporated. I feel it makes the reader feel more important along with inclined to trust me more. Plus it appears more real rather than coming from a robot. I quite like making my viewers feel important and also special. I want to hand them over the best tips on how to deal with important issues like this.

  3. source says:

    I am curious to find out what blog system you are utilizing? I’m experiencing some small security problems with my latest site and I would like to find something more safeguarded. Do you have any recommendations?

  4. Looking forward to move into another hous?!… Real estate busines is getting more and more less protitable, check out why…

  5. ciag dalszy says:

    Thank you for another informative website. Where else could I get that type of information written in such a perfect way? I have a project that I’m just now working on, and I’ve been on the look out for such information.

  6. produce,Injury similar to me, is actually a tenacious infant, rejected towards restore, as the heart and soul can be warming along with humid area, when it comes to whatever improve. Centimeter

  7. moja strona says:

    There is noticeably big money comprehend this. I assume you have made specific nice points in features also.

  8. Simply discovered your site through google and I consider it’s a shame that you’re not ranked greater since this is a implausible post. To alter this I decided to avoid wasting your web site to my RSS reader and I will try to mention you in one of my posts since you really deserv extra readers when publishing content of this quality.

  9. Very interesting info !Perfect just what I was searching for!

  10. czytaj says:

    Just wanted to say this website is extremely good. I always want to hear new things about this because I’ve the similar blog during my Country with this subject which means this help´s me a lot. I did so a search around the issue and located a large amount of blogs but nothing beats this. Many thanks for sharing so much inside your blog..

  11. I wouldnt have ever noticed you basically never tried look and research. Superb and excellent and aim delighted I first viewed it. Now we all know a few things i have to do. Thanks much.

  12. witryna www says:

    Appreciate it, this information was very worthwhile, To offer to checking out even more of this phenomenal site.

  13. Cause of Arthritis… just below, are some totally unrelated sites to ours, however, they are definitely worth checking out…

  14. Youre so cool! I dont suppose Ive read anything similar to this prior to. So nice to uncover somebody with some original thoughts on this subject. realy appreciation for beginning this up. this web site is one area that is needed on the internet, somebody if we do originality. beneficial job for bringing new stuff for the web!

  15. The good intreguing pages retain me arriving the following time and time again. thanks again a lot.

  16. Hey, you used to write wonderful, but the last several posts have been kinda boring… I miss your tremendous writings. Past few posts are just a little bit out of track! come on!

  17. I am therefore grateful for this post and thanks so much for sharing it with us.

  18. ed sheeran x says:

    I discovered your site website on google and check a couple of your early posts. Preserve the really good operate. I merely extra encourage Feed to my MSN News Reader. Looking for forward to reading far more within you later on!…

  19. strona says:

    You would endure heaps of different advised organized excursions with various chauffeur driven car experts. Some sort of cope previous features and a normally requires a to obtain travel within expense centre, and even checking out the upstate New York. ???????

  20. wazny link says:

    The online tends to make it much easier than actually to acquire meals distribution firms.  Since they are internet, they are effortless for you to realize. You can store for what you desire proper from your unique personal pc. It is easier than ever to discover foods suppliers for Japanese cooking, this includes all those that specialize in meals such as kombu. This kelp is harvested in Japan and is very important for many Japanese dishes. If you are preparation on cooking Japanese foods, you will want to be particular that you use the freshest substances. 

  21. kliknij says:

    Thank you for the good critique. Me and my neighbor were just preparing to do some research on this. We got a book from our local library but I think I’ve learned better from this post. I am very glad to see such fantastic information being shared freely out there.

  22. toilet seats should be disinfected regularly too, this is done to avoid the proliferation of harmful bacterias,,

  23. porno video says:

    I visited multiple web sites however the audio quality for audio songs existing at this site is really marvelous.|

  24. It’s perfect time to make some plans for the future and it’s time to be happy. I’ve read this post and if I could I desire to suggest you few interesting things or tips. Maybe you could write next articles referring to this article. I want to read more things about it!

  25. wiecej info says:

    After reading this I think is quite informative , i appreciate your time and effort to put this posts.

  26. witryna www says:

    Aw, this was a really nice post. In concept I wish to put in writing like this additionally ?taking time and actual effort to make an excellent article?however what can I say?I procrastinate alot and by no means seem to get something done.

  27. Minoxidil says:

    Very energetic blog, I liked that bit. Will there be a part 2?|

  28. A lot of thanks for all your labor on this web page. Ellie really loves doing internet research and it’s really obvious why. My partner and i notice all relating to the powerful means you present efficient information via the web blog and therefore improve contribution from others on the subject and our simple princess is really understanding a great deal. Take advantage of the remaining portion of the year. You have been carrying out a great job.

  29. Hi, Neat post. There’s an issue together with your website in web explorer, may check this? IE still is the market leader and a good component to other people will pass over your great writing due to this problem.|

  30. Amaze! Thank you! I constantly wished to produce in my internet site a thing like that. Can I take element of the publish to my blog?

  31. First of all I would like to say awesome blog! I had a quick question that I’d like to ask if you don’t mind. I was interested to know how you center yourself and clear your thoughts before writing. I have had difficulty clearing my thoughts in getting my ideas out there. I do enjoy writing but it just seems like the first 10 to 15 minutes are generally wasted simply just trying to figure out how to begin. Any ideas or hints? Many thanks!|

  32. seize your rss as I can?t in finding your e-mail subscription hyperlink or newsletter service. Do you have any?

  33. Attractive section of content. I simply stumbled upon your website and in accession capital to say that I acquire actually loved account your blog posts. Any way I’ll be subscribing in your feeds and even I fulfillment you get entry to consistently rapidly.|

  34. After exploring a handful of the blog posts on your site, I seriously appreciate your way of blogging. I added it to my bookmark website list and will be checking back in the near future. Take a look at my website as well and tell me your opinion.|

  35. you use a fantastic blog here! do you wish to earn some invite posts on my small blog?

  36. porn stream, says:

    I always spent my half an hour to read this weblog’s content daily along with a mug of coffee.|

  37. I always spent my half an hour to read this blog’s content daily along with a mug of coffee.|

  38. moje zródla says:

    I am often to blogging and i truly appreciate your content. The write-up has actually peaks my interest. I am going to bookmark your website and maintain checking for new data.

  39. Usually I don’t read post on blogs, however I wish to say that this write-up very forced me to try and do so! Your writing style has been amazed me. Thanks, very nice post.|

  40. I got this website from my friend who informed me on the topic of this web page and at the moment this time I am browsing this web site and reading very informative articles at this time.|

  41. Hi there, just was alert to your weblog thru Google, and located that it’s truly informative. I’m going to be careful for brussels. I’ll be grateful when you proceed this in future. Many folks will likely be benefited out of your writing. Cheers!|

  42. buceta says:

    Hey! Do you use Twitter? I’d like to follow you if that would be okay. I’m absolutely enjoying your blog and look forward to new posts.|

  43. PDS Maurice says:

    I love what you guys tend to be up too. This kind of clever work and coverage! Keep up the awesome works guys I’ve incorporated you guys to my personal blogroll.|

  44. Have you ever thought about writing an e-book
    or guest authoring on other sites? I have a blog based upon on the same information you discuss and would love to have you share some stories/information. I know my audience would enjoy your work.

    If you are even remotely interested, feel free to shoot me an e-mail.

  45. Natalie Hinn says:

    I like the helpful information you supply for your articles. I’ll bookmark your blog and take a look at once more right here regularly. I am fairly certain I will be informed plenty of new stuff proper right here! Best of luck for the following!|

  46. Good day! I know this is kind of off topic but I was wondering if you knew where I could find a captcha plugin for my comment form? I’m using the same blog platform as yours and I’m having problems finding one? Thanks a lot!|

  47. What a stuff of un-ambiguity and preserveness of valuable familiarity concerning unexpected emotions.|

  48. I am now not sure where you are getting your info, but great topic.
    I needs to spend a while finding out much more or understanding
    more. Thank you for fantastic information I was looking for this info for my mission.

  49. Jeep 2018 says:

    Hello, just wanted to mention, I liked this blog post.
    It was funny. Keep on posting!

  50. Fidel says:

    Hey! I’m at work browsing your blog from my new
    iphone 3gs! Just wanted to say I love reading your blog
    and look forward to all your posts! Carry on the great work!

  51. money loans says:

    What’s up, always i used to check weblog posts here early in the morning, since i love to find out more and more.

  52. HIV testing says:

    Great info. Lucky me I ran across your blog by chance (stumbleupon).
    I have book marked it for later!

  53. Its like you read my mind! You seem to know so much about this, like you wrote the book in it or something.
    I think that you could do with some pics to drive
    the message home a little bit, but instead of that,
    this is fantastic blog. A fantastic read. I will
    certainly be back.

  54. What’s up to all, how is the whole thing, I think every
    one is getting more from this web page, and your views are nice for new visitors.

  55. Awesome blog! Do you have any tips for aspiring
    writers? I’m hoping to start my own website soon but I’m a little lost on everything.
    Would you propose starting with a free platform like WordPress
    or go for a paid option? There are so many choices out there that I’m totally overwhelmed
    .. Any suggestions? Bless you!

  56. Thanks to my father who stated to me regarding this website, this blog is really awesome.

  57. I just could not go away your site before suggesting that I actually loved the standard information an individual provide for your visitors?
    Is gonna be back steadily to inspect new posts

  58. tamta strona says:

    glad to be one of many visitors on this awesome website : D.

  59. see it here says:

    Very good site you have here but I was wondering if you knew of any forums that cover the
    same topics discussed in this article? I’d really love to be a part of
    community where I can get responses from other experienced individuals that share the same interest.
    If you have any suggestions, please let me know. Thank you!

  60. I’m amazed, I have to admit. Seldom do I come across a blog that’s both equally educative and entertaining, and without a doubt, you’ve hit the nail on the head.
    The issue is something which not enough men and women are speaking
    intelligently about. I am very happy I stumbled across this during my hunt for something relating to this.

  61. Only wanna tell that this is extremely helpful, Thanks for taking your time to write this.

  62. I blog frequently and I seriously thank you for your information. This article has really peaked my interest. I’m going to take a note of your website and keep checking for new details about once per week. I opted in for your Feed as well.|

  63. dog daycare says:

    This text is invaluable. Where can I find out more?

  64. Just wish to say your article is as surprising.
    The clearness in your post is simply nice and i
    could assume you are an expert on this subject. Fine with your permission let me
    to grab your RSS feed to keep updated with forthcoming post.

    Thanks a million and please carry on the rewarding work.

  65. My developer is trying to persuade me to move to .net from PHP. I have always disliked the idea because of the expenses. But he’s tryiong none the less. I’ve been using Movable-type on a variety of websites for about a year and am anxious about switching to another platform. I have heard very good things about blogengine.net. Is there a way I can transfer all my wordpress posts into it? Any kind of help would be really appreciated!|

  66. I’m curious to find out what blog platform you happen to be working
    with? I’m experiencing some small security problems with my
    latest blog and I’d like to find something more secure.
    Do you have any suggestions?

  67. I got this web site from my friend who shared with me concerning this website and
    now this time I am browsing this website and reading very informative
    posts at this time.

  68. pet service says:

    Saved as a favorite, I like your website!|

  69. I am truly glad to read this blog posts which contains tons of helpful
    data, thanks for providing these kinds of data.

  70. We’re a gaggle of volunteers and starting a brand new scheme in our community.
    Your web site provided us with valuable info to work on. You’ve performed an impressive activity and our whole community
    will likely be thankful to you.

  71. Thank you for the good writeup. It in fact was
    a amusement account it. Look advanced to far added agreeable from you!
    By the way, how could we communicate?

  72. Greetings! I know this is kinda off topic but I was wondering if you knew where I could find a captcha plugin for my comment form? I’m using the same blog platform as yours and I’m having difficulty finding one? Thanks a lot!|

  73. I used to be very happy to seek out this net-site.I needed to thanks to your time for this excellent read!! I definitely enjoying each little little bit of it and I’ve you bookmarked to take a look at new stuff you weblog post.

  74. this page says:

    Asking questions are really pleasant thing if you are not understanding something completely, however this paragraph offers nice understanding yet.

  75. dog walking says:

    Link exchange is nothing else however it is just placing the other person’s blog link
    on your page at appropriate place and other person will also do same in support of you.

  76. Hurrah! Finally I got a webpage from where I be capable of in fact obtain valuable facts
    regarding my study and knowledge.

  77. Appreciation to my father who told me regarding this weblog, this webpage is truly remarkable.

  78. strona www says:

    some truly great info , Sword lily I found this.

  79. I’m extremely impressed together with your writing skills as well as with the layout for your weblog. Is this a paid theme or did you modify it yourself? Either way keep up the nice high quality writing, it’s rare to see a great blog like this one today..|

  80. Thanks for finally writing about >Housing Market Appears
    Ready To Host First-Time Buyers | PurdyHomes LLC <Loved it!

  81. Really when someone doesn’t understand afterward its up
    to other users that they will help, so here it occurs.

  82. visit says:

    Hello just wanted to give you a quick heads up. The text in your content seem to be running off the screen in Internet explorer.

    I’m not sure if this is a formatting issue or something to
    do with internet browser compatibility but
    I figured I’d post to let you know. The style and design look great
    though! Hope you get the issue resolved soon. Thanks

  83. check that says:

    Please let me know if you’re looking for a article author for your blog.
    You have some really good posts and I think I would be a good asset.
    If you ever want to take some of the load off, I’d love to write some material
    for your blog in exchange for a link back to mine. Please blast me an email if
    interested. Thank you!

  84. Hello, Neat post. There’s a problem along with your web site in internet explorer, could check this? IE nonetheless is the marketplace chief and a good section of folks will leave out your fantastic writing because of this problem.|

  85. websites says:

    How can I change to fluid width in the New Blogger Template Designer?

  86. More Bonuses says:

    I’m planning to create my own blog, and a question comes up to my mind..

  87. Aw, this was an exceptionally nice post. Taking the time and actual effort to make a really good article… but what can I say… I put things off a whole lot and never seem to get nearly anything done.|

  88. Admiring the persistence you put into your site and detailed information you present. It’s great to come across a blog every once in a while that isn’t the same out of date rehashed information. Fantastic read! I’ve bookmarked your site and I’m including your RSS feeds to my Google account.|

  89. Jenkem says:

    Hmm is anyone else having problems with the images on this blog loading? I’m trying to determine if its a problem on my end or if it’s the blog. Any feed-back would be greatly appreciated.|

  90. this site says:

    My brother recommended I might like this website.
    He was totally right. This post actually made my day.
    You can not imagine simply how much time I had spent for this information! Thanks!

  91. That is very fascinating, You’re a very professional blogger.

    I’ve joined your feed and look forward to looking for
    extra of your excellent post. Also, I’ve shared your web
    site in my social networks

Leave a Reply

Your email address will not be published.