With home prices out of reach, more buyers turning to parents for help

Source: KPCC Radio

In almost every metro area across the country, the number of people taking out new mortgages has fallen dramatically, but Southern California is a notable exception, according to a report by ATTOM Data Solutions. The report found that in the first quarter of 2017, U.S. new home loan originations fell 30 percent from last year and by 21 percent from the same period last year, to a three-year low. But in the Los Angeles metro area, mortgage originations were up by 4 percent, meaning more people have been taking out new home loans despite higher interest rates. More than 28 percent of loans in Southern California now have someone other than a spouse co-sign, such as a parent, compared with the national average of 22 percent. Among large U.S. cities, only Miami (40.2 percent), Seattle (37.4 percent) and San Diego (28.9 percent) have more co-borrowers.

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