First-Time Home Buyer Activity Declined in Q2 2020

According to Genworth Mortgage Insurance (GMI), an operating segment of Genworth Financial, first-time home buyer activity decreased in the second quarter due to the pandemic, but overall it still remains active. During the second quarter, 539,000 single-family homes were purchased by first-time homebuyers, down -4.6% compared to last year. This represented 40% of single-family homes purchased during Q2. In Q2 nearly 83% of all first-time homebuyers used some form of low-down payment mortgage products to purchase their home. According to GMI that is a record-breaking level. In a statement released with the report GMI chief economist Tian Liu said, “The COVID-19 pandemic pushed the U.S. economy into the sharpest recession on record in March. The housing market also began correcting in April, resulting in an 18% decrease in the number of first-time homebuyers in the second quarter compared to the first quarter. A quick rebound in May moderated the market decline.”