In a direct contradiction to the previous article, an article in the New York Times is predicting fewer first time home buyers for some time to come. The article cites tight credit and eager investors buying up lower priced inventory as two major factors.
A survey of real estate agents indicates that first time home buyers as a percentage of all buyers are down from a normal 40% to 31 percent. Surveys also show that first time buyers are relying very heavily on low down payment mortgages from the FHA, as they can still get a loan for as little as 3.5 percent down. However, fees are being raised for these loans and the financially troubled agency is indicating that fees will continue to rise.