In a recent market analysis from lender loanDepot, they found that the median age of borrowers taking out loans more than $417,000 (referred to as jumbo loans) had dropped to 38.5 years old. One year ago, the median age was 41 years old, and at the end of 2011 it was as high as 49.5.
In addition to a drop in age for loanDepot Jumbo Loans, the median credit score for large mortgages also has gone down, signaling less credit restrictions in the market today. Over the past two years, the average has stayed at around a score of 764, compared to 770 in 2012 and 785 in 2011. These credit scores do not include those with FHA secured loans, which don’t require as high of a credit score to be approved.
The sales of higher priced homes have increased substantially in the last few years as well, with almost 2 percent of home sales being more than $1 million in April 2014, and 2.7 percent being between $700,000 and $1 million. These levels are close to reaching the same percentages seen at the market’s peak in 2007.
For all home buyers, the overall median age is dropping as well, from a high of 45 years old in 2010. In 2012 and 2013 the median age of a home buyer was 42 years old. The concern of economists is that while the median age may be dropping, the percentage of the younger population who currently owns a home has been dropping as well.
In 1980, nearly 52 percent of people age 25 to 34 owned a home in the United States. In 2012, that number is only 38 percent. In many places where home prices have dropped, the job market still hasn't completely recovered. Until more, younger Americans have stable jobs, it is likely the number of younger home owners will stay lower too.
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