Tag Archives: Millennials

Chase Mortgage is teaming up with the bank’s credit card arm to deepen its relationships with existing customers—thanks in large part to one innovative mind. This feature originally appeared in the June 2017 issue of MReport.

Over the last two years, a few different trends have emerged concerning where and when people are buying homes, according to a recent report, and they aren't what you think. Read ahead to see how millennial are continuing to shape the housing market.

Without swift intervention, millennials could become “a lost generation of homeownership,” according to Dr. Ben Carson, Secretary of the U.S. Department of Housing and Urban Development. In his opening remarks at the National Housing Symposium in Washington, D.C. on Friday, Carson called homeownership a “lost dream” for many millennials—even ones who are credit-worthy. Current and upcoming efforts by the FHA and Fannie Mae will likely open more doors for millennial buyers, Carson said.

A new report shows that most millennials believe now is a good time to buy a home—and more than half of them are actually ready to take the plunge. About 51 percent of those surveyed said they are either extremely likely or very likely to buy within the next year. According to experts, impending mortgage rate hikes are likely causing the uptick in urgency. Still, roadblocks like scarce inventory and a lack of knowledge around the homebuying process could pose a problem for millennials.

As millennials secure stable post-recession jobs, they are flocking to the Midwest—particularly Minnesota, Wisconsin, and Indiana—to purchase homes. Low inventory and high demand have created a seller’s market in almost every region across the three states. Sellers have even reported getting multiple offers without having to negotiate.

New data shows that Baby Boomers may be just as saddled with student loan debt as millennials—maybe even more. Between 2005 and 2015, people aged 60 or older saw their student debt increase eight times, while debt for those under 30 increased just twice. Many Boomers are taking out loans and refinancing their homes to either return to school or help their children and grandchildren with college tuition.

Though many of today’s homebuyers are looking for a more automated, high-tech mortgage process, that doesn’t mean they want to be left to their own devices. Most buyers—even the tech-savvy millennials—still want a good amount of handholding throughout the process. Striking a balance between those high-tech and high-touch demands can make lenders stand out in today’s marketplace.

The rate of homeowners in the U.S. has reached a historic low. Many question if the largest living generation, millennials, will purchase homes at similar rates to previous generations. Apartment List’s annual renter survey included input from 24,000 millennials, which they analyzed to better understand millennial homeownership plans.

High down payments and the amount of time required to save for these payments are among the reasons for millennials not quite settling yet. Millennials lifestyles change over time, and a lower down payment could make a difference in the long run.

Millennials are starting to move into the housing market, but with inventory dwindling they may be out of luck. The solution? Newly built homes. Though millennials are often first time buyers, it does not necessarily mean they are starter home buyers.