RICHMOND, Va., Dec. 16, 2020 /PRNewswire/ — Genworth Mortgage Insurance, an working phase of Genworth Monetary, Inc. (NYSE: GNW), at the moment launched the 14th version of its Chief Economist’s, Tian Liu, First-Time Homebuyer Market Report for the third quarter of 2020. The report aggregates all publicly out there authorities knowledge and proprietary mortgage business knowledge into one digestible report. The total evaluation might be seen at https://miblog.genworth.com/first-time-homebuyer-market-report/.
- First-time homebuyer exercise elevated considerably on account of low rates of interest, better affordability, and re-ignited appreciation of “house”:
- Q3’20: 700,000 single-family properties had been bought by first-time homebuyers, up 15.7% from a yr in the past
- The variety of first-time homebuyers elevated by 16.3% from the second quarter to a seasonally-adjusted annual fee of two.55 million in Q3, the quickest tempo on document
- First-time homebuyers represented 39 % of single-family house gross sales and 58 % of all buy mortgages
- Decrease rates of interest helped ease housing affordability:
- Mortgage charges for first-time homebuyers decreased from 3.36% in June to three.01% in September, the bottom rate of interest for mortgages on document
- In comparison with Q2, decrease rates of interest lowered mortgage funds by 4 %, whereas greater house costs elevated mortgage funds by three %
- First-time homebuyers stay depending on low-down cost mortgages:
- Total, 577,000 first-time homebuyers used some type of low-down cost mortgage merchandise to finance their house buy in Q3, or 82 % of all first-time homebuyers
- PMI: Low-down cost standard mortgages, enabled by the PMI business, helped a document 285,000 first-time homebuyers in Q3, up 34 % from a yr in the past
- FHA: The FHA loans program financed 195,000 first-time homebuyers throughout the quarter, a rise of 8 % from a yr in the past
- State-by-State COVID-19 Influence:
- An amazing variety of states reported the next variety of first-time homebuyers in Q3 in comparison with a yr in the past
- Solely three states– New York, Pennsylvania, and Hawaii—reported fewer first-time homebuyers within the quarter in comparison with a yr in the past
- For many states, the booming third quarter has erased the sharp declines within the first-time homebuyer market from Q2
- 12 months-to-date, 47 states and territories reported the next variety of first-time homebuyers
- Repeat purchaser market additionally reported sturdy development
- Development within the third quarter elevated by 17 % from a yr in the past to 1.08 million items
- Within the first 9 months, repeat consumers bought a complete of two.55 million properties, down one % in comparison with the identical interval final yr
- Lower pushed by the sharper slowdown within the repeat purchaser market throughout Q2
“The third quarter of 2020 was a outstanding quarter for each the housing market and the first-time homebuyer phase, with essentially the most first-time homebuyers buying properties in 20 years, and the very best stage of house gross sales since 2006. Though the economic system continues to be in the midst of the recession, and a lot of employees remained unemployed or unable to take part within the labor power, there was overwhelming demand for housing and homeownership from these nonetheless in a position to buy a house,” mentioned Tian Liu, Chief Economist, Genworth Mortgage Insurance coverage.
“The pandemic has elevated choice for homeownership as properties are serving as shelter, workplace, and classroom. Decrease rates of interest have made properties extra inexpensive, whereas lowered spending on private companies, journey, and leisure has elevated the share of expenditure out there for housing. A shift in housing choice amongst current owners is driving repeat purchaser actions as they search for totally different places and totally different house options. The housing increase has resulted in greater house costs and sparked a rise in new building of single-family properties.”
“The housing finance system continued to carry out properly throughout the third quarter to make sure entry to credit score for first-time homebuyers. The COVID-19 pandemic has burdened the housing finance system in 3 ways: extra hurdles to purchase and promote properties; tighter credit score availability on account of elevated credit score danger – each precise and perceived; and lack of mortgage business capability on account of rising demand for refinancing. Credit score availability for potential first-time homebuyers might be particularly susceptible since first-time homebuyers rely closely on low-down cost mortgages for financing.”
About Genworth Mortgage Insurance coverage’s Chief Economist Report
The First-Time Homebuyer Market Report is the one financial sequence measuring the variety of house gross sales and mortgages to first-time homebuyers protecting the whole housing market. This report gives quarterly estimates of the first-time homebuyer market because the first quarter of 1994—spanning two housing cycles and 24 years. It gives a historic perspective essential to know at the moment’s first-time homebuyer market. It’s primarily based on a pattern dimension of 23.2 million first-time homebuyers from authorities studies and business knowledge. By capturing the whole market over a protracted interval, and offering the newest market snapshot, this report makes the first-time homebuyer market extra seen to housing business individuals and policymakers.
For entry to the complete report and charts, go to: https://miblog.genworth.com/first-time-homebuyer-market-report/
About Genworth Mortgage Insurance coverage
Genworth Mortgage Insurance, an working phase of Genworth Monetary, Inc. (NYSE: GNW), is headquartered in Raleigh, North Carolina, and operates in all 50 states and the District of Columbia. Genworth Mortgage Insurance coverage works with lenders and different companions to assist individuals responsibly obtain and keep the dream of homeownership by guaranteeing the broad availability of inexpensive low down cost mortgage loans. Genworth has been offering mortgage insurance coverage services and products within the U.S. since 1981.
Opinions, analyses, estimates, forecasts, and different views included in these supplies are these of Tian Liu, are primarily based on present market situations and are topic to alter with out discover, don’t essentially signify the views of Genworth or its administration, and shouldn’t be construed as indicating Genworth’s enterprise prospects or anticipated outcomes. Neither Tian Liu nor Genworth ensures that the knowledge supplied in these supplies is correct, present, or appropriate for any specific objective. Ahead wanting statements shouldn’t be thought of as ensures or predictions of future occasions.
SOURCE Genworth Mortgage Insurance coverage