It pays to read past the headline

First-time homebuyers are finally jumping into the U.S. property market.
Need proof? Look at the mortgage market’s fastest-growing segment: loans with low down payments insured by the Federal Housing Administration.
Originations of FHA-backed mortgages, used predominately by first-time buyers, were up 54 percent in September from a year earlier, according to the most recent data from CoreLogic Inc. By December, the FHA insured 22 percent of all loan originations, up from 17 percent a year earlier, according to data compiled by Ellie Mae Inc.

That sounds great....but that chart looks weird. Maybe if you keep reading you'll find out the answer.

President Barack Obama’s administration, in January 2015, reduced mortgage-insurance premiums for FHA loans. That lowered the cost of getting a home loan and brought in at least 75,000 new borrowers with credit scores of less than 680, according to a November report from the U.S. Department of Housing and Urban Development.

WhooHoo! Subprime is back, baby!

While mortgage giants Fannie Mae and Freddie Mac have an option for borrowers to put down as little as 3 percent, they require private insurance with risk-adjusted premiums based on credit scores, debt-to-income ratios and other factors.
"It still costs more to get a 3 percent-down loan with Fannie and Freddie if you have a lower FICO score," Cecala said.

Let's blow up another bubble!