The State of America’s Housing Market (continued)

The average rent on vacant properties is 28% higher than the average mortgage payment. The estimated median monthly mortgage principal and interest payment of a first-time homebuyer was $794. The estimated median monthly mortgage principal and interest payment of a repeat buyer was $1,006.

Financing the Home Purchase

94% of buyers financed their home purchase, including:

96% of 25-44 year olds
82% of 45-64 year olds
66% of buyers 65 and older
35% of buyers had a down payment of 20% or more.

74% of consumers who plan to buy a home in the next 12 months will use their personal savings for a down payment.
The average buyer financed 89% of the home purchase.
94% of first-time homebuyers chose a fixed-rate mortgage.
54% of first-time homebuyers used a low down payment FHA mortgage.
Mortgage rates are expected to rise and reach 4.5% by mid-2012.

Sources:
1. Forbes, November 14, 2011
2. National Association of REALTORS® Profile of Home Buyers and Sellers 2011
3. Bank of America: Mortgage Index Study, December 8, 2011
4. National Association of REALTORS®