Morning Briefing: First-time buyers expected to increase say mortgage pros

by Steve Randall22 Jun 2016
First-time buyers expected to increase say mortgage pros
Three quarters of mortgage professionals polled recently say that they expect first-time buyers’ market share to stay the same or increase by at least 3 percentage points in 2016.

New buyers are a key reason for tightening inventory according to respondents but there are still barriers to homeownership. Most (64 per cent) of respondents said that lack of a down payment was the top obstacle limiting access to mortgage credit; 16 per cent cited inadequate income; 9 per cent said home price; and 8 per cent said poor credit scores.

The high demand from first-timers, together with these barriers to mortgage credit, has led to a rise in piggyback mortgages, a concern for 49 per cent of respondents.

The survey was conducted by Genworth Mortgage Insurance at the Mortgage Bankers’ Association Secondary Conference in New York in May.
 
Housing counseling collab announced
A national collaboration of lenders, investors, real estate agents and housing counseling agencies announced today that they are joining forces to raise awareness of the opportunities and benefits of working with housing counseling agencies.

The groups, including the Mortgage Bankers’ Association and National Association of Realtors, will help to spread the word about housing counseling and how it can help would-be homeowners.

"Homeownership is an investment in the future, but consumers sometimes need a little extra help on the path to get there," said NAR President Tom Salomone. "Homeownership counseling is available to help consumers meet those challenges head on, and the Homeownership Collaborative will make more people aware that these services are available to them."
 
How the Presidential election is impacting housing
Three reports this week reveal how the forthcoming presidential election is having an effect on the housing market.

The first, from the California Association of Realtors, shows that historically there has been little impact on the state’s housing market from elections.

“Transitory political events such as presidential elections don’t drive the housing market,” said CAR president Pat “Ziggy” Zicarelli. “Market fundamentals such as housing inventory, affordability, interest rates, job growth, and consumer confidence are the real factors that influence the housing market.”
A separate poll, commissioned by CAR and conducted by The Futures Company think tank, revealed that 70 per cent of respondents who are considering buying a home want their presidential candidates to talk about housing affordability.

Finally, a poll by mortgage lender loanDepot found that 21 per cent say their vote will be influenced by housing and finance policy.

A third say that the candidates are not saying enough on the issue and a similar proportion say that the candidates are doing a bad job of setting out their policies on housing and finance. 
 
 

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