Skip to main content

Share of First-Time Buyers on Agency-Backed Loans Rises, But So Does Risk Team Thayer Real Estate News Eugene OregonTeam

ups-and-downs-graph1-300x198
Team Thayer Real Estate News Eugene Oregon
The share has risen above previous year levels since April 2015, reflecting improvements within the labor market, riskier mortgage lending, and continuing low mortgage rates. This and a 35-month-long seller’s market for existing homes are causing home prices to increase much faster than income.
“The strong spring 2015 home buying season has been paced by outsized gains for first-time buyers,” said Edward Pinto, co-director of the AEI’s International Center on Housing Risk. “Unfortunately, these gains are fueled in part by liberalized credit standards, which is creating demand pressure and driving real home prices higher. This will lead to future instability.”
9-22 AEI graph 2
Team Thayer Real Estate News Eugene Oregon
The Federal Housing Administration (FHA) had a share of first-time homebuyers in August at or above 80 percent, Fannie Mae’s share stood at 43.3 percent, and Freddie Mac had a share of about 40 percent, AEI reported.
“FHA continues to drive the first-time homebuyer market,” Pinto said. “Its underpricing of credit is exposing a new generation of homebuyers to the perils of unsustainable loans.”
The Combined FBMSI, which measures the share of first-time buyers for both government-guaranteed and private-sector mortgages, reached approximately 51.4 percent, up from 49.3 percent the prior August.
AEI also found that the number of primary owner-occupied purchase mortgages going to first-time buyers in August totaled an estimated 156,000, up 20 percent from the 130,000 mortgages last year during this same time.
“We paint an accurate picture of first-time buyer activity by using a nearly complete census of agency loans,” said Stephen Oliner, co-director of AEI’s International Center on Housing Risk. “The NAR’s survey results are no match for the story told by millions of loans.”
The Agency First-Time Buyer Mortgage Risk Index (FBMRI) reached 15.55 percent in August 2015, up 1.3 percentage points from a year earlier, and nearly 6 percentage points higher than the mortgage risk index for repeat homebuyers, a gap that continues to widen.
The report showed that 54 percent of first-time buyer loans were high risk in August, mostly because of risk layering. This total is up from 48.5 percent a year earlier.
“It is simply not true that first-time buyers face tight credit,” Oliner said. “If you have a steady job and an ordinary credit score, you can buy a home with little money down.”
9-22 AEI graph 1
Team Thayer Housing News Eugene Oregon
Team Thayer
Justin Lee Thayer Team Thayer Eugene Oregon 
Justin Lee Thayer is Lane counties expert in market analysis for real estate investors. Call Justin @ 541-543-7287

Popular posts from this blog

The top 5 mistakes people make selling their homes. Team Thayer Official Oregon Real Estate News.

5 home selling mistakes with Team Thayer 1. Trying to sell your home yourself In this DIY era, the urge to try to sell your home yourself to save money can beckon like the smell of oven-fresh cookies at an open house. Resist.  Working with a licensed agent  helps ensure you’re not leaving money on the table as a result of an off-target listing price or a mistake in the many steps that lead to a final sale. Sell your sofa yourself online. List your home with a professional. 2. Picking the wrong Realtor Not all agents are equal. Just because your college buddy dabbles in the industry doesn't mean he’s the best guy to sell your home. You want experience. You want to  work with an agent  who has a depth of knowledge. Invite your buddy to the house-warming party.  Find an agent  who can truly perform. Do you research.  Top Home Sales Mistakes 3. Pricing your home too high Sometimes it’s good to aim high. But when you’re setting a price for your home, it’s better to b

UFC 227 play-by-play and live results #UFC #MMA #UFC227

LOS ANGELES – MMAjunkie is on scene and reporting live from today’s UFC 227 event, and you can join us for live play-by-play and official results beginning at 6:30 p.m. ET (3:30 p.m. PT). The event takes place at Staples Center in Los Angeles. The main card airs on pay-per-view following preliminary-card bouts on FX and UFC Fight Pass. In the main event, bantamweight champion T.J. Dillashaw (15-3 MMA, 11-3 UFC) rematches former champ and ex-teammate Cody Garbrandt (11-1 MMA, 6-1 UFC) for the title. In the co-feature, flyweight champion Demetrious Johnson (27-2-1 MMA, 15-1-1 UFC) has a rematch with Olympic gold medalist and former title challenger Henry Cejudo (12-2 MMA, 6-2 UFC). Follow along with our round-by-round updates and official results beginning at approximately 6:30 p.m. ET for the UFC Fight Pass prelims, 8 p.m. ET for the prelims on FX, and 10 p.m. ET for the main card on pay-per-view. To discuss the show, be sure to check out our  UFC 227 discussion thread . You can als