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PRNewswire 28-Feb-2019 9:00 AM
RICHMOND, Va., Feb. 28, 2019 /PRNewswire/ -- Genworth Mortgage Insurance, an operating segment of Genworth Financial, Inc. (NYSE:GNW), today released the eighth edition of the First-Time Homebuyer Market Report from its Chief Economist, Tian Liu, detailing data findings from the fourth quarter of 2018 and the full year. The report aggregates all publicly available government data and proprietary mortgage industry data into one dataset. The below highlights are followed by Liu's analysis, and the full report can be downloaded here.
4Q'18 Overview
Full Year '18 Overview
Comments from Tian Liu, Chief Economist, Genworth Mortgage Insurance
"The first-time homebuyer market once again outperformed the broader housing market, recording its best purchase year since 2006 and regaining its pre-Housing Crisis level. At the same time, first-time homebuyers are not immune to declining affordability, as their number declined nationally and in 35 states in Q4. First-time homebuyers responded to declining affordability by taking a wait-and-see approach and opportunistically looking for lower-priced properties.
Low down payment mortgages -- and conventional loans with private mortgage insurance, in particular, play a very important role in supporting first-time homebuyers, and even more so in a market with declining affordability. The private mortgage insurance industry now serves twice as many first-time homebuyers compared to 2014.
Looking ahead, some first-time homebuyers may be in fear of overpaying during the slowdown which could prolong the slowdown. However, the improved housing affordability in the past two months, if sustained, may boost momentum by the 2019 spring selling season, which could, in turn, lead to better housing data and lift confidence in the market. In the longer term, the current slowdown should serve to remind the housing industry and policymakers of the importance of housing affordability. The housing industry should also take note of the resilience of the first-time homebuyer market in the downturn and offer more products and services to meet their needs."
About Genworth Economist's First-Time Homebuyer Market Report
The First-Time Homebuyer Market Report is the only economic series measuring the number of home sales and mortgages to first-time homebuyers covering the entire housing market. This report provides quarterly estimates of the first-time homebuyer market since the first quarter of 1994—spanning two housing cycles and 24 years. It provides a historical perspective necessary to understand today's first-time homebuyer market. It is based on a sample size of 23.7 million first-time homebuyers from government reports and industry data. By capturing the entire market over a long period, and providing the latest market snapshot, this report makes the first-time homebuyer market more visible to housing industry participants and policymakers.
To access the full report, visit: https://miblog.genworth.com/first-time-homebuyer-market-report-02-19/.
About Genworth Financial
Genworth Financial, Inc. (NYSE:GNW) is a Fortune 500 insurance holding company committed to helping families achieve the dream of homeownership and address the financial challenges of aging through its leadership positions in mortgage insurance and long term care insurance. Headquartered in Richmond, Virginia, Genworth traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com.
From time to time, Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of genworth.com. From time to time, Genworth's publicly traded subsidiaries, Genworth MI Canada Inc. and Genworth Mortgage Insurance Australia Limited, separately release financial and other information about their operations. This information can be found at http://genworth.ca and http://www.genworth.com.au.
Disclaimer
Opinions, analyses, estimates, forecasts, and other views included in these materials are those of Tian Liu, are based on current market conditions and are subject to change without notice, do not necessarily represent the views of Genworth or its management, and should not be construed as indicating Genworth's business prospects or expected results. Neither Tian Liu nor Genworth guarantees that the information provided in these materials is accurate, current, or suitable for any particular purpose. Forward looking statements should not be considered as guarantees or predictions of future events.
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SOURCE Genworth Mortgage Insurance