General World News

Will rising interest rates impact VA loans for first-time homebuyers?

Picture2

Source: Polygon Research, CPSVision, Veterans Supplement August 2020

Loan originators can educate themselves about the Veterans with service-related disability in their communities and markets and look for opportunities to provide high quality education and financing in an efficient and transparent manner.

Broadening the scope to include all Veterans within a certain age range regardless of disability status, we estimate that about 4 million Veterans are under the age of 50, with a median household income of $91,400 according to March 2021 ASEC. (source

The VA loan is an important financing tool for VA-eligible borrowers to achieve their homeownership dream. In 2021 one in two VA borrowers was a first-time homebuyer (FTHB). 

Last year, mortgage interest rates reached record lows. The average VA FTHB’s interest rate was 2.90% and the quarterly FTHB VA purchase loan volume stayed elevated. In Q3 2021, it reached a record level of over $19 billion for that quarter, $174 million higher than Q3 2020. And since 2017, VA purchase loans helped roughly 200,000-230,000 VA-eligible first-time home buyers per year become homeowners. 

This translates into an average of $56 billion in mortgage originations per year. In 2021, the VA FTHB segment reached an estimated $69 billion, according to Ginnie Mae loan-level disclosure data updated through January 2022, analyzed in GovLoansVision.

So, what will 2022 look like for the VA FTHB borrowers?

Our scratch details ⇒

BusinessMediaguide.Com portal received this content from this noted web source: HousingWire.Com