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August 2018   Volume 44, Number 8      
 

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Almost Half of Freddie Mac Mortgages in Q1 Borrowed by First-Time Home Buyers

Recent market and mortgage conditions data indicates that more people are buying their first homes. First-time homebuyers accounted for nearly half the new mortgages issued by Freddie Mac in the first quarter of 2018, according to Bloomberg.

During the first quarter of the year, 46 percent of the Freddie Mac mortgages issued were to first-time buyers. The rush for mortgages could be due to homebuyer fears that the situation for buyers will get worse, said Bloomberg. Home prices continue to rise steadily as mortgage rates increase.

The median age of the first-time home buyers is 32, according to The National Association of Realtors. Despite limited housing inventory, rising home prices, and student debt, young people are still buying first homes.

“This is a millennial-driven rise. You’ve got a strong economy that’s helping, along with the appetite of the financial market to invest in mortgages,” said Sam Khater, Freddie Mac Chief Economist.

As rents continue to rise, many buyers, especially young people, are afraid they will be stuck renting indefinitely if they do not purchase homes now.

First-time buyers especially, are scrambling to close the deals quickly before home prices and mortgage rates go higher and become out-of-reach for those on tight budgets.

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In this issue:

Why Buying a Home in 2018 Could be a Smart Move

Five Fastest Selling Cities for Residential Real Estate

Almost Half of Freddie Mac Mortgages in Q1 Borrowed by First-Time Home Buyers

Slow Sales at Home Depot Signal Warning for Housing

Homeowners Gain $1 Trillion in Home Equity

Homeownership Trends Upward as Renter Households Decline

Mortgage Rates Reach Seven-Year High

New Home Prices Decline to 12-Month Low

The Best Cities for Housing Market Purchasing Power

Helping Clients Celebrate Their New Home Purchase on Social Media

 


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