Do you know today’s homebuyer? Many of us in the industry recognize that affordability and inventory challenges dominate buyer concerns, but these obstacles shouldn’t hold us back. By adapting to shifting demographics and behaviors, we can empower borrowers and help navigate today’s mortgage environment. Missing these insights could mean missing opportunities in your strategy.
In this article, Mary Kay Scully, Director of Customer Education at Enact, explores key insights from the latest NAR Profile of Buyers and Sellers released in 2025. These trends reveal new opportunities, and challenges, that may help shape your 2026 business strategy.
The challenge: a changing buyer landscape
Elevated interest rates and home prices have left many potential buyers, especially first-time homebuyers, on the sidelines. Many younger and first-time buyers may not understand that they don't necessarily need a large downpayment to start their homeownership journey. Products like mortgage insurance, which becomes tax deductible in 2026, can jump start a first purchase and allow more buyers to enter the market and enjoy the many benefits of homeownership.
In today’s housing world, the latest National Association of Realtors (NAR) Profile of Buyers and Sellers has revealed some surprising trends:
- First-time buyers are at a historic low (21%).
- The median age of first-time buyers is now 40.
- Repeat buyers often pay in cash and hold significant equity.
If your 2026 goals include growing purchase business, these shifts matter. Understanding today’s buyer is critical to crafting strategies that resonate—and drive results.
Homeownership builds wealth
Despite market noise, homeownership remains one of the most effective ways to build household wealth.
Here's why:
- Equity Accumulation: Every mortgage payment increases ownership stake.
- Home Price Appreciation: Even modest annual growth (3–5%) compounds over decades.
- Inflation Hedge: Fixed-rate mortgages stabilize housing costs as rents rise.
- Tax Advantages: Mortgage interest and property tax deductions may reduce taxable income.
- Forced Savings: Monthly payments create a disciplined wealth-building habit.
It’s important to remember that homeownership works best as a long-term investment (5+ years) and is not risk free: market downturns, maintenance costs, and property taxes can impact returns. Borrowers need to be mindful of the commitment and benefit, but also the associated risks of homeownership. You’re their champion and informing them may inevitably help build their trust in you.
Opportunities for lenders and where to focus
The data points to clear opportunities for lenders to meet evolving borrower needs:
1. Targeted First-Time Buyer Programs
- Promote low down payment options and down payment assistance.
- Offer credit education and partner with employers or municipalities for shared equity programs.
2. Age-Specific Marketing
- With first-time buyers averaging 40 years old, tailor messaging to older Millennials and Gen Xers balancing rent, student loans, and family expenses.
3. Cash Buyer Services
- 30% of repeat buyers pay in cash. Provide bridge loans, asset-backed lending, or concierge services to help them leverage equity while maintaining liquidity.
4. Home Equity Lending
- Expand HELOCs, cash-out refinances, and renovation loans for repeat buyers with significant equity.
5. Financial Literacy & Advisory Tools
- Offer planning resources and investment-linked mortgage products for buyers using personal savings or financial assets.
Action steps for 2026
Before finalizing your goals and tactics, review the latest buyer and seller profiles. Understanding demographic shifts, LTV trends, and household dynamics will help you:
- Build targeted campaigns.
- Design products that meet real borrower needs.
- Position your brand as a trusted advisor in a complex market.
You can also segment your audience by age and buying behavior, align marketing with tailored loan products, and provide financial education to boost borrower confidence. Use data-driven tracking to refine strategies and maximize engagement throughout the year.
>> Go deeper on learning actionable tools, getting resources, and more insights in our upcoming training course on December 4th.
>> Explore other training options and gear up for 2026 by reviewing our training calendar and on-demand courses here.
More ways Enact can help
The buyer profile is evolving, and so should your strategy. By aligning your offerings with today’s realities, you can turn market challenges into growth opportunities. Your learnings about the recent NAR Report don’t have to stop here…
Join our upcoming live training webinar!
Want to dive deeper into the 2025 NAR Report and learn how these insights may shape your 2026 strategy? Register now for our live training webinar on December 4, 2025. Click here to reserve your spot today >>
Enact offers a suite of tools—including Rate Express®, Underwriting Resources, and training resources to help you along the mortgage origination journey.
Source: Mary Kay Scully is the Director of Customer Education at Enact Mortgage Insurance with over 30 years of industry experience. She trains over 35,000 mortgage professionals annually on topics including tax return review, fraud detection, process improvements, and compliance.
The statements in this article are solely the opinions of Mary Kay Scully and do not necessarily reflect the views of Enact or its management.
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