Realtors: FHA Supports First-Time Buyers

Nearly 40% of homebuyers are using Federal Housing Administration financing, according to a November survey of real estate agents. The monthly survey by the National Association of Realtors also found that first-time homebuyers are responsible for 50% of all sales. "The FHA helps provide affordable mortgage financing to homeowners, particularly first-time homebuyers who are so important in drawing down inventory to help stabilize the current housing market," said NAR president Vicki Cox Golder. The latest government data show that FHA endorsed 92,900 purchase mortgages in November and 83% of the borrowers are first-time buyers. The NAR survey also tracks distressed sales and agents reported that foreclosure and short sales made up 33% of home sales last month. Investors and first-time buyers are "competing" for foreclosed properties, NAR said. "Realtors report that many buyers have pricing expectations that treat every property as if it were in foreclosure."