Before the 2008 housing crisis, first-time buyers typically made up 40% of the market. Now, with mortgage rates averaging 6% to 6.69% and home prices at record highs, new buyers are finding it increasingly difficult to make their mark. The median age of first-time buyers rose to 40 the highest ever recorded compared with the late 20s median from the 1980s. The historically low share of first-time buyers underscores the real-world consequences of a housing market starved for affordable inventory, said Jessica Lautz, NAR deputy chief economist and vice president of research.
Currently, 40% of homeowners don't have a mortgage loan at all and of those who do, 70.4% have fixed rate loans of 5% or less. This is why many homeowners in America have excellent FICO scores; their long-term debt costs remain fixed as their wages rise. One of the hallmarks of the housing bubble crash period was the significant number of foreclosures happening in America. With so many distressed homeowners and underwater mortgages, it was the biggest bust in American economic history.