I cant say I have any insight but I can provide one story.

My nephew and his wife recently purchased their first house in Orange County a month ago. He works, has a degree and makes maybe $50K-$60K/year. His wife is working on her masters and is not working. They have no debt.

But in order to buy their first-time home ($320K house) they had to have his parents as co-signers on the loan. I’m sure they did not put 20% down – something much less.

I suspect there will be more co-signers for first time home buyers as we go forward. Unless prices continue to drop to the point that co-signers are not needed.