A majority of mortgage industry professionals believe that lack of affordable housing inventory and inability to save for a sufficient down payment are delaying first-time homebuyers.
Student debt continues to be an issue, along with the ability to qualify for a mortgage, according to Genworth Mortgage Insurance’s recent survey.
However, mortgage industry professionals predict the first-time homebuyers market will be strong in 2018, growing more than the overall housing market did this year. Fifty-seven percent believe that, while 31 percent think it will grow at the same rate.
“Despite their emergence as today’s fastest-growing homebuying demographic, first-time homebuyers still face many headwinds. While some of these, such as shortages in affordable inventory, are environment-driven, others can be addressed via improved awareness on the various low-down-payment solutions available in today’s market,” said President and CEO of Genworth Mortgage Insurance Rohit Gupta. “Ensuring that the right tools from both a product and educational standpoint are in place is imperative to supporting the continued positive trajectory for these buyers.”
Most mortgage experts also believe that demand will increase for loan to value products, while one-third believe they will still see the same demand. High loan to value and low FICO loans are also predicted to see a higher demand.
Demand for non-QM loans are anticipated to remain the same, or rise slightly in 2018, according to the survey. Forty-nine percent predict a “strong” appetite, while 41 percent predict an average demand. Nine percent said it would be weak, while 1 percent said it would be nonexistent.