First-Time Buyers Account for Nearly Half of Purchase Mortgages, Newrez Reports

(Image courtesy of Tom Fisk/pexels.com)

Homeownership remains part of the American Dream, even as the path to achieving it evolves, according to Newrez, Fort Washington, Pa.

Newrez released new findings from its mortgage originations data showing that first-time homebuyers accounted for 49% of its new purchase loans in 2025, underscoring the continued presence of first-time buyers in today’s market.

The report found the median age of first-time buyers remained steady at 33 and said these borrowers are more likely to use lower down payment options, with a median down payment of 4.85% of the purchase price.

“First-time buyers also purchased lower-priced homes than repeat borrowers, with a median price of $345,741—up 10% from 2022,” the report said. Median borrower income for this cohort increased from $61,728 to $77,208 over the same period.

Bob Johnson, head of originations at Newrez, noted affordability remains a challenge. “[But] these buyers are finding practical ways to enter the market and achieve homeownership, showing that the path is still there for those looking to buy.”

As for repeat homebuyers, those who took out mortgages with Newrez purchased more expensive homes in 2025 than in 2022, with the median purchase price rising 11% from $432,620 to $482,000. The median down payment declined slightly from 15% to 14.82% of the purchase price, while median borrower income increased 26% from $87,526 to $110,139. Median borrower age also increased from 42 to 44 years old.