housing

First-time homebuyers are still crushing the mortgage market when compared with repeat buyers, according to a recent report by the Urban Institute (UI). Despite facing inflated prices, stunted supply, tight credit, and rental costs that make saving for a down payment difficult, first-timers have commanded the mortgage market for the past 10 years, the report revealed and The Urban Institute doesn’t see that changing anytime soon.

Giving a brief background, the report indicated that theFederal Housing Administration (FHA), which makes low down payment loans available to borrowers with subpar credit, has typically targeted the first-time buyer market, who make up around 80 percent of the FHA’s total originations. That percentage plunged to about 75 percent during the recession but has tiptoed back up to nearly 83 percent today, UI reports.

By contrast, the GSEs’ share of first-time homebuyers historically tracked much lower than the FHA’s, totaling about 25 percent during the early 2000s. During the housing bubble, it jumped to around 40 percent. After receding slightly during the recession, the GSEs’ share of first-timers has maintained an upward trajectory since 2013. It sits at nearly 50 percent today, the report notes.

When combining…