Low down payments to purchase homes rose to a seven-year high in June due to the overall growth in purchase lending. Data and analytics firm Black Knight Financial Services reports that over the past 12 months, 1.5 million borrowers have purchased a home using down payments below 10%. The low down payment loans now account for nearly 40% of all purchase origination's.
Fannie Mae reports that housing sentiment dipped in July as high home prices weigh on buyers and economic conditions weigh on sellers. The Fannie Mae Home Purchase Sentiment Index fell 1.5 percentage points in July to 86.8, after matching its all-time high in June. A few key points to the report: The net share of Americans who say it is a good time to buy a home fell 7 percentage points to 23%; the net share of Americans who say that home prices will go up increased by 1 percentage point in July to 47%, following the upward trend from last month. In addition, the net share of Americans who say they are not concerned about losing their job rose by 9 percentage points to 75%, reversing the decrease from last month.
The Census Bureau recently reported that 95% of new households created in the U.S. in the last 10 years were comprised of families that are renting. There were 8.56 million households formed during that time with 8.13 million of those renters. A 2016 Pew Research survey showed that 72% of renters said they would like to purchase a home at some point.
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