Channel also noted that the surge in first-time buyers does not necessarily mean a flood of new entrants into the market. What this indicates is their relative comfort with entering a high-rate market, compared to repeat buyers.
“First-time buyers were likely more comfortable seeking new mortgages, making them a bigger part of a smaller pool of buyers,” he said.
LendingTree’s analysis also highlighted differences in the financial profiles of first-time and repeat buyers.
First-time buyers generally presented lower credit scores, smaller down payments, and sought lower mortgage amounts compared to repeat buyers, according to the analysis.
On average, first-timers were found to have credit scores that were approximately 32 points lower than repeat buyers. Meanwhile, their down payments were $42,218 lower and their loan amounts $49,021 smaller.
Source: mpamag.com