Rising home prices are sending first-time home buyers to their parents for help with mortgage down payments, the Wall Street Journal reported. More than 26 percent of mortgage borrowers who used Federal Housing Administration-insured loans got assistance from a relative to make the down payment in the 12 months through September, up from about 22 percent in 2011, according to data released late last year as part of the agency’s annual report. Though the pace of home-price growth has slowed, prices are still consistently rising year over year, and higher mortgage rates are making buying more expensive. What’s more, many who missed the chance to purchase homes at modest prices are waiting for a pullback to jump in. That has created a difficult situation for first-time buyers, many of whom are struggling to stockpile the cash for down payments. Factors including student debt and lackluster wage growth have made it difficult for many to keep up with rising home prices. The homeownership rate among those younger than 35 has fallen 8 percentage points since 2004 to 35 percent in 2017, according to Freddie Mac.
