Freddie Mac recently released data on mortgage trends for the first quarter of 2018. One figure that may surprise many: almost half of new mortgages in the first quarter of 2018 were secured by first time home buyers.
According to the National Association of Realtors, the age of these first time home buyers is around 32 years old. It would, therefore, seem that these first time home buyers are, in fact, millennials. A generation entering the economy with student debt, rising home prices, rising interest rates and a shortage of homes for sale, many would not have expected them to account for 46 percent of the new mortgages.
According to an article written by Phashant Gopal published by Bloomberg, with the improving job market and access to easier credit regulations, this group has been moving out of the rental market and becoming home owners. These young adults are aware that mortgage rates and home prices are increasing and have decided to enter the home ownership ranks before they are priced out.
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