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How first home buyers are keeping the US market alive

Few Americans are selling their homes as about 60 per cent of mortgages are locked in to rates below 4 per cent, but first home buyers are entering the market.

Matthew Cranston
Matthew CranstonUnited States correspondent

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Key Statistics

  • 60 per centof mortgages are locked into rates below 4 per cent.
  • 1.6 per centwas the annual home price growth in June. A key index showed it remained near an 11-year low.
  • 33 is the average age of a first home buyer. The 30-34 age bracket is the largest cohort of home loan applicants this year.

Washington | Home loan applications in the United States have declined to their lowest level in 27 years, freezing residential property sales and cooling price growth, but also leaving the door open for first home buyers.

The 30-year fixed mortgage rate, which America’s property market is based on, reached a 22-year-high of 7.2 per cent this month, according to the Mortgage Bankers Association, reducing the demand for home loans.

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Matthew Cranston is the United States correspondent, based in Washington. He was previously the Economics correspondent and Property editor. Connect with Matthew on Twitter. Email Matthew at mcranston@afr.com

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    Original URL: https://www.afr.com/world/north-america/why-first-home-buyers-are-storming-the-us-market-20230906-p5e2bp