Tag: entry-level

Debating Risk, Merit of GSEs Accumulating Low Downpayment Market Share

February 22, 2019 by Zelman & Associates

Like the three years prior, in 2018, approximately 45% of the $1.2 trillion of purchase mortgages originated was covered by mortgage insurance provided by private entities or the government via the FHA, VA or USDA programs. This suggests an ...

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Filed Under | entry-levelmortgage

A New Analysis of Homebuyer Leverage Ratios and Entry-Level Implications

February 08, 2019 by Zelman & Associates

In 2018, we estimate that the monthly payment for a typical entry-level homebuyer increased 11% year over year, inclusive of principal, interest and mortgage insurance. The spike was driven by an approximate 40 basis point increase in 30-year ...

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Filed Under | affordabilityentry-levelmortgage

An Indirect Benefit from Tax Reform to Entry-Level Buyers as Insurance Rates are Cut

April 20, 2018 by Zelman & Associates

Earlier this year, we dissected the impact of tax cuts on net income for different income cohorts, noting that the average individual tax filer would experience an approximate 1.5% increase in after-tax cash flow in ...

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Filed Under | affordabilityentry-levelmortgage

What Percentage of First-Time Buyers Will Never Leave? Higher Than You Think

February 09, 2018 by Zelman & Associates

In 2017, we estimate that there were approximately 6.4 million home closings, inclusive of existing home transactions and new construction. We further estimate that 79% of these homes were purchased by owner-occupants, as opposed to investment ...

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Filed Under | demographicsentry-levelexisting home sales

New Disclosures Show Young, Minorities and Lower Income Lead Mortgage Rebound

October 20, 2017 by Zelman & Associates

Based on our national mortgage finance research, we estimate that 2.57 million unit purchase mortgages were originated in 2011, which stood 61% lower than the cycle peak of 6.60 million in 2005 and represented the lowest production since at ...

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Filed Under | entry-levelmortgage

While Consumer Wage Growth Disappoints, Net Income Accelerates

August 25, 2017 by Zelman & Associates

Almost a year ago in an analysis titled, “Entry-Level Wage Growth Not Great, but Continuing to Improve”, we offered a relatively optimistic outlook for entry-level incomes with the growth rate improving for two key indicators in 2016 compared ...

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Filed Under | entry-levelmacro housing

Despite Home Price Strength, Entry-Level Affordability Still Screens Favorably

June 02, 2017 by Zelman & Associates

There are numerous home price measures that are provided by the government and private entities, both for free and at a charge, that offer market participants a general understanding of national pricing. Given a very high correlation across ...

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Filed Under | affordabilityentry-levelhome pricing

Urban Sprawl Picking Up Steam Even Beyond Starter Homes

April 21, 2017 by Zelman & Associates

Beginning in 1Q15, we began tracking new home for-sale inventory across more than 20 production homebuilders, including the square footage offered as a way to better gauge investments and the willingness to cater to the under-served ...

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Filed Under | entry-levelhomebuilding

Defying the Narrative, Positive Signs Continue for Homeownership Rate

February 10, 2017 by Zelman & Associates

We recently outlined several reasons why we believed that the national homeownership rate was near a bottom. The most-frequently cited measure of homeownership comes from the Census Bureau’s quarterly Housing ...

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Filed Under | entry-levelhomeownership

Many Entry-Level Buyers Lean on Mom and Dad for Downpayment

December 30, 2016 by Zelman & Associates

Earlier this year, we surveyed a nationally-representative sample of consumers (~3,000) about their demographic, housing and financial circumstances. One area of focus was the perception of mortgage credit availability among renters or those ...

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Filed Under | affordabilityentry-levelmillennialsmortgage