FHA Backed Loans Reported to Have Slight Increase

Certain pricing requirements, mortgage types, and age requirements are considered a trend for first-time home buyers.  Different housing market statistics are indicating that first-time home buyers may soon be increasing to pre-Recession levels. The first indication was a slight uptick in FHA (Federal Housing Authority) backed loans.  With the recent easement of FHA loan requirements including a lower percentage required for the down payment, more first-time home buyers are able to qualify for FHA mortgages.  The increase in FHA-backed mortgages went up to a 17% market share for a quarterly count of 23,000 FHA loans in the 1st quarter of 2016.

Pre-Recession Trends

 

Interestingly, in 2002 – 2003, well before the Great Recession, FHA backed mortgages were only 10% of the market share where in 2010, FHA loans had a 28% share of the housing market.  These statistics show a steady presence of FHA loans in real estate transactions.  It also indicates the necessity of a government supported loan program for struggling Americans who need assistance with their new home purchase.

Conventional home financing still makes up the majority of home purchases in America today.  For the first quarter of 2016, Conventional loans made up 68% of the homes achieved by home buyers.  The reason for this may be another market statistic which showed an overall increase of in personal income in the United States.  a 2.2% year-over-year increase for 2014 was reported with median income reported at $28,757.  This is 5.4% less than its high in 2007 right before the Recession, and it is still lower than income reported in 20000, but statistics show the trend of the total of personal income is and has been on the rise since it bottomed out in 2012.

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