Blog Post Date May 6, 2025
By Don Almeida- Mortgage Expert and President of Happy Home Mortgage
In a housing market that’s thrown plenty of curveballs over the past few years, first-time homebuyers are finally catching a break—and making history in the process.
A Record-Breaking Start to the Year
First-time homebuyers just made a historic move by claiming a record share of agency-backed purchase loans in the first quarter of 2025. With many existing homeowners choosing to stay put and hold onto low mortgage rates, new buyers are stepping into the spotlight and finally getting the attention—and inventory—they deserve.
Easier Paths to Affordability
Affording a home still isn’t easy, but first-time buyers are finding smarter ways to make it happen. Average down payments are significantly lower than those of repeat buyers, especially with FHA and other flexible loan options. That opens the door to homeownership even for those who may not have six figures saved.
Younger Buyers Are Stepping Up
Gen Z and younger Millennials are making their mark. Nearly one in four first-time buyers this year were under 28, and the majority of purchase loans went to borrowers buying their very first home. More than ever, younger adults are confident, resourceful, and ready to take that leap into ownership.
Help Is on the Way
Across the country, homebuyer assistance programs have hit a record high. Thousands of programs are offering help with down payments, closing costs, and other barriers that used to keep buyers on the sidelines. Whether you’re early in your career or just building your financial base, support is more available than ever.
The First-Time Buyer Profile Is Evolving
While the average age of a first-time buyer is rising, that’s not a sign of delay—it’s a sign of strategy. Today’s buyers are approaching homeownership with intention, planning ahead, and making smart, informed choices that set them up for long-term success.
What This Means for You
If you’re between 20 and 45 and thinking about buying your first home, 2025 might just be your moment. With reduced competition from repeat buyers, more financial support, and growing momentum behind your generation, there’s never been a better time to start your homeownership journey.
Sources:
ICE Mortgage Monitor – BusinessWire: First-Time Homebuyers Comprise Record Share of Agency Purchase Lending in Q1 2025
Scotsman Guide: First-Time Homebuyers Claimed a Record Share of First-Quarter Agency Purchase Lending
MortgageOrb: First-Time Homebuyers Accounted for 58% of Agency Purchase Loans in Q1
Down Payment Resource: 2025 Kicks Off with Record Number of Homebuyer Assistance Programs
Homestead Financial Mortgage: The Rising Age of First-Time Homebuyers
