Fewer First-time Homebuyers Made a Low Down Payment Between 2016-2017

Between December 2016 and November 2017, 61 percent of first-time homebuyers who purchased a home through a mortgage made a zero to six percent down payment, dropping slightly from 2014-2015 (63 percent).

The National Association of Realtors' November 2017 Confidence Index Survey says that making homebuying more affordable will require price growth to slow down, income growth to speed up, or expanded down payment assistance programs so that homebuyers cane make a higher down payment with lower monthly costs. Household income has grown by about 20 percent since 2012, while home prices have increased by approximately 60 percent.

In December 2015, Fannie Mae and Freddie Mac started accepting mortgage applications with as little as three percent down payment to ease the access to credit for first-time buyers. However, the share of first-time buyers who obtained low down payment mortgages has not budged up significantly ... one reason may be that a lower down payment means lower upfront cash outlay; this also means making higher monthly payments.

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