Typically, first-time home buyers make up 40% of home sales. That’s not been true at all in 2014. This year, so far, they make up just 33% of total sales, according to today’s report from the National Association of Realtors®.
That makes it hard for so-called move-up buyers to make their moves since most of them need to sell their existing homes to move up. Overall, it’s a major depressing effect on home sales.
NAR’s chief economist says: “Less stringent credit standards and mortgage insurance premiums commensurate with current buyer risk profiles are needed to boost first-time buyer participation, especially with interest rates likely rising in upcoming years.”