Millennials and older Gen-Zers have become the housing industry’s top influencers, as indicated by mortgage activity.
According to COGNITION Smart Data, Green Builder Media’s suite of market intelligence services, Millennials are inundating the housing market, taking advantage of sub-3% mortgage rates and locking in historically low 30-year rates at an average of 3.256%.
Home purchase and refinancing mortgages are surging, with projections for continued growth as Millennials and older Gen-Zs continue to hit their peak homebuying potential.
In response to this market momentum, lenders are expanding affordable loan options and requiring less stringent credit scores on certain types of debt vehicles, like Federal Housing Administration loans (although requirements for FICO scores did increase during the pandemic as risk-averse lenders shielded themselves from economic uncertainty).
The majority of Millennials qualifying for loans are married (60%) and male (57%), and the average loan amount is just over $211,000.
For more information about Millennial and Gen-Z homebuying trends, sign up for a COGNITION subscription.
About COGNITION Smart Data:
COGNITION Smart Data offers advanced intelligence and insights about market trends and important customer information like behavioral patterns, purchase drivers, buying preferences and sentiment. COGNITION enables clients to make informed business decisions, yielding specific deliverables and tangible results. COGNITION provides a definitive competitive advantage by allowing companies to stay a step ahead of their competitors.