Millennials and mortgages

In February 2019, Realtor.com released their 2018 Generational Propensity Report which outlined homebuying trends based on generational groups. Here are the biggest takeaways:

  • Millennials passed Generation X as the group taking on the most new mortgages in January 2017.
  • As of November 2018, Millennials have the largest share of loan originations by dollar volume.
  • Millennials make lower down payments and purchase less expensive homes than Gen X and Baby Boomers.
  • Millennials take on larger mortgages due to making low down payments.

So, what does this mean for you? Well, that long-held perception of Millennials being the quintessential renters in our economy should be thrown out the window. If you’re writing off Millennials as potential borrowers, you’re missing out on a huge piece of the homebuying market! While Generation X and Baby Boomers are in their prime (or beyond their prime) stage to earn income, Millennials are just now at the cusp—purchasing starter homes as their careers and income become solidified.

 

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