Despite several years of higher home prices and affordability challenges, first-time homebuyers continued to account for nearly half of Newrez's purchase mortgage originations in 2025, according to the lender's analysis of purchase loans funded between 2022 and 2025.
The report found first-time buyers represented 49% of Newrez's purchase loans in 2025, down from 56% in 2022. While their share declined over the four-year period, first-time buyers remained a substantial portion of the company's purchase lending activity.
"As the country marks its 250th anniversary, homeownership remains a key part of the American Dream, but the journey looks different for today's buyers," said Bob Johnson, head of originations at Newrez. "At Newrez, our mission is to do everything possible to make home happen, and that starts with helping consumers better understand the market they're navigating—because even in a higher-cost environment, first-time homebuyers are still finding ways to achieve their goal of owning a home."
The data also shows how the profile of Newrez's first-time buyers has changed. The median purchase price increased from $314,000 in 2022 to $345,741 in 2025, while median borrower income rose from $61,728 to $77,208 during the same period. Even as home prices increased, typical down payments remained relatively consistent, edging down slightly from 5.00% to 4.85% of the purchase price. The median age of first-time buyers held steady at 33.
"First-time buyers continue to represent a significant portion of our business, which speaks to the resilience of homeownership demand," Johnson said. "While affordability remains a challenge, 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."
Repeat buyers accounted for 51% of Newrez's purchase originations in 2025, up from 44% in 2022. They also continued to purchase substantially more expensive homes than first-time buyers, with a median purchase price of $482,000 compared with $345,741 for first-time buyers. Median borrower income for repeat buyers increased from $87,526 in 2022 to $110,139 in 2025, while the median borrower age rose from 42 to 44. Median down payments remained near 15% of the purchase price, slipping slightly from 15.00% to 14.82%.
The report notes that its loan production data was not adjusted for inflation. During the same period, annual U.S. inflation slowed from 8% in 2022 to 2.6% in 2025, based on data from the Federal Reserve Bank of Minneapolis cited in the report.
Separately, a Newrez-commissioned survey conducted by Morning Consult June 12-14 found that 81% of U.S. adults still consider homeownership part of the American Dream. The survey included 2,203 U.S. adults and carries a margin of error of plus or minus 2 percentage points.
Newrez said it defined first-time homebuyers using Federal Housing Finance Agency guidelines as borrowers purchasing a principal residence who had not held an ownership interest in a residential property during the previous three years.
For mortgage professionals, the findings suggest affordability pressures have changed the profile of today's successful first-time buyer more than they have eliminated demand. Newrez's data shows first-time buyers continued to make up nearly half of the company's purchase lending in 2025, while qualifying with higher incomes than borrowers did in 2022 and continuing to rely on relatively small down payments.
As refinance opportunities remain limited across much of the industry, the data reinforces the importance of serving purchase borrowers through low-down-payment products, down payment assistance programs and other affordability-focused financing options. While Newrez's figures reflect its own production rather than the broader mortgage market, they indicate first-time buyers continue to represent a meaningful source of purchase business for originators.
