Creative ways homebuyers are getting lower mortgage rates

🐪 Welcome back! Today's newsletter is 518 words, a 2-minute read. Let’s dive in…

1. Trump wins presidency for second time

According to the AP, Donald J. Trump has been elected as the 47th president, four years after his defeat by Joseph R. Biden Jr. He will be the first president in more than 120 years to serve nonconsecutive terms.

Trump defeated Vice President Harris in an election that saw a number of unexpected developments: A criminal trial involving Trump during the campaign, two assassination attempts against the former president and a change atop the Democratic ticket after President Biden dropped out of the race.

2. Ways homebuyers are getting lower mortgage rates

45% of recent buyers — half of whom bought a home in the past year and the other half in the past two years — secured rates below 5%. That’s from a Zillow survey conducted between March and September. This comes despite rising mortgage rates and a 115% increase in the typical mortgage payment compared to pre-pandemic levels.

Here’s how borrowers achieved these lower rates:

• 63% of buyers use down payment assistance programs

• 60% of buyers used projected rental income to receive lower mortgage rates

• 57% of buyers used non-traditional loan types such as adjustable-rate mortgages

• 35% received special financing from either the seller or builder

• 28% benefited from assistance from friends or family

• 26% made their purchase offer contingent upon a lower rate

• 25% refinanced into a lower rate after purchasing

• 23% of buyers bought points to lower their rates

3. More Nuggets

💰 More homeowners just started pulling cash out of their properties. Here’s why. (CNBC)

🏡 Mortgage demand trapped with first-time homebuyers. (NMP)

🤝 loanDepot eyes purchase business in the South with new mortgage JV. (FT)

🔔 CFPB resolves unlawful redlining case against Townstone Financial. (NMN)

4. Charted: States where inventory is above pre-pandemic levels

Active listings are up 29% year-over-year but remain 21% below 2019 levels. However, inventory in these eight states has now exceeded pre-pandemic levels: Arizona, Colorado, Florida, Idaho, Oklahoma, Tennessee, Texas, and Utah.

5. Average age of U.S. homebuyer jumps to 56

According to a new report by the National Association of Realtors (NAR),

• The average age of a typical American first-time homebuyer has reached an all-time high of 38 this year, up from 35 in 2023.

• The average age of homebuyers has hit 56 overall this year, up from 49 last year.

• The typical repeat buyer's age has increased from 58 to 61 during the same time frame.

The report, released yesterday, is based on data obtained via a questionnaire completed by 5,930 'primary residence buyers' who bought houses between July 2023 and June 2024.

☀️ You’re all caught up. See you on Friday!

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