ABA’s Davis: First-Time Home Buyers’ Share Rises in 2016

The share of single-family home mortgages going to first-time home buyers rose to 16 percent in 2016, a steady upward trend from 13 percent in 2013, according to the annual American Bankers Association Residential Real Estate Survey. ABA EVP Bob Davis previewed a few findings from the survey in a talk to the National Association of Business Economists’ annual policy conference in Washington, D.C., today. Full results from the survey will be released later this month.

The survey also showed that bankers are lending less often outside of the restrictive Qualified Mortgage standards. The percentage of non-QM loans made in 2016 dipped to 9 percent, down from 14 percent in 2015, 10 percent in 2014 and 16 percent in 2013. Nearly one-third of bankers restricted their mortgage loans solely to QMs, up five points from 2015. The share of banks making non-QM loans only in targeted markets or limited circumstances dipped nine points to 45 percent, while 23 percent of banks originated loans without regard to QM status.