Price Increases Are Challenging Buyers
As home prices and interest rates rise, more buyers, especially first-time purchasers, are under pressure. Home prices rose sharply in the last quarter of 2016, fueled by low inventories in many parts of the country, particularly in the entry-level home price range. Federal policies that restrict access to credit, including suspension of a planned reduction in FHA mortgage insurance premiums and high guarantee fees by Fannie Mae and Freddie Mac, will add to affordability woes.
![](https://cdn.nar.realtor/sites/default/files/assets/images/mar17_marketplace_chart.png)
More Renters Change Their Status
The share of former renters who have taken the plunge into homeownership has slowly but steadily increased over the last two years. The ex-renters include first-time buyers and so-called boomerang buyers who have reentered the market. Rising rents have contributed to the increasing interest in home buying.
![](https://cdn.nar.realtor/sites/default/files/assets/images/mar17_marketplace_chart2.png)
Source: NAR Research