Anecdotal, but thatās actually not the problem and it seems like policy makers make gestures in this direction because it SEEMS like it would be helpful. I bet 75% or more of my purchase lending over the past two years has been to first-time homebuyers. Caveat, Iām not stealing deals often from the KB Homes of the world and they are building the housing stock priced more affordably for working class first-time homebuyers and that are larger users of down-payment assistance, seller incentives and rate buydowns.
Anyway, I canāt think of anything on the demand side that doesnāt have predictable consequences I donāt like. Bear in mind, too, that a lot of the ways that the government addresses affordability end up a tax on middle-class or more mature buyers/borrowers, it just doesnāt get publicized that way. That doesnāt make it a bad deal on the face, but it does give me a little heartburn knowing someone selling a home and buying a small upgrade is subsidizing a first-time homebuyer, and they are both otherwise identical in terms of wealth, income, and credit qualification.