First time home buyers

The gap between supply and demand in the housing market is contributing to affordability constraints that are likely to limit homeownership long-term, according to Freddie Mac.

In its latest effort to reach first time home buyers, Freddie Mac is launching a new 3% down payment program that casts aside a number of restrictions in its existing low down payment offerings.

The recently enacted tax reform bill is likely to encourage more consumers to rent instead of buy and tamp down the rapid rise in home prices.

Home values grew during 2017 at their fastest pace in four years and the same supply and demand dynamics behind that increase remain in place for 2018.

Rather than working with large-scale investors, Freddie Mac said it will focus on assisting community organizations and local institutions to fund single-family properties for renters with special needs.