Since the housing crash, first-time homebuyers who finance their homes through the Federal Housing Administration (FHA) and the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac have outnumbered repeat buyers every year, according to data in the Urban Institute’s July Monthly Chartbook. Before the crash, these roles were reversed.Existhome

Much of the increase in first-time homebuyer activity has been through the GSEs. As of this past April, 47.8 percent of mortgages backed by government-sponsored enterprises (GSEs) Fannie and Freddie went to first-time homebuyers, the highest level in 15 years, according to the Chartbook. The GSEs’ share of first-time homebuyers stood at about 40 percent from 2007 to 2013, but has been rising over the past few years.

When combined with FHA-backed mortgages, of which the vast majority (82.7 percent as of this past March) go to first-time homebuyers, the total share of first-time homebuyers using GSE or FHA financing this past April stood at 60 percent.

Part of the reason for the rising share of first-time homebuyers in the market is a decline in repeat buyers, mostly since the housing crisis. The FHA and the GSEs financed 1.8 million repeat homebuyers in 2001. This number fell to around 1.5 million in 2007 and then dropped drastically over the next four years, hitting a low of just above 600,000 in 2011, according to the Chartbook. In 2016, repeat-homebuyer numbers had recovered to just over 1 million, but this number was still just 57 percent of the 2001 total.

In contrast, 1.4 million first-time homebuyers used FHA or GSE financing in 2016, slightly higher than the 1.3 million in 2001, and the highest number in the last 15 years.