TransUnion Study: 17 Million First-Time Homebuyers May Enter Housing Market Within Next 5 Years

TransUnion is the first credit reporting agency to bring trended consumer credit data to market with its CreditVision® suite of solutions. Now it reports that soon there will not only be millions of first-time homebuyers possibly entering the housing market, but that consumers may see increased benefits derived from the use of trended data in the underwriting of Fannie Mae loans.

The recent study revealed:

  • 13.8–17.1 million potential first-time homebuyers entering the housing market in the next 5 years
  • Consumers aged 20–39 will likely represent the majority of first-time homebuyers.
  • Ages 20–29 also have experienced major growth among first-time homebuyers
  • Many consumers could move up to prime or above risk tiers, qualifying for better loan rates

To help lenders identify consumers likely to become first-time homebuyers, TransUnion partnered with AnswerMine, a machine-learning model development firm, to develop a model examining thousands of credit attributes and scores, resulting in the “First-Time Homebuyer Propensity Model.”

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