With 30-year fixed interest rates averaging the lowest we’ve seen in months, many homeowners are wondering if now is the time to refinance. And while personal situations may dictate whether refinancing at these low rates is a good decision, there are some other factor to examine as well.
This is the lowest the average down payment amount has been in three years. Q1 of 2015 homebuyers put down 14.8 percent of their home’s purchase price juxtaposed to 15.2 percent in Q4 of 2014 and 15.5 percent the year prior.
Enter the First-Time Homebuyer
These first quarter trends in down payment suggest that first time homebuyers are slowly coming out to play. Fannie Mae and Freddie Mac’s newer low down payment programs in tandem with lower insurance premiums for FHA loans, are giving first-time homebuyers opportunities in the market. Large investors that have been purchasing inventory are also offering less competition in the first quarter which has helped offset the balance in favor of first-time homebuyers.