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Millennials Just Set An All-Time U.S. Homeownership Record

By Dan Green

Millennials just set an all-time record for homeownership; Today’s live mortgage rates and the 5-day trend; New Home Sales slow through June, maybe temporarily.

Millennials Move Into Homeownership At Record Pace

Millennial Homeowner Rates In Q2 2018 - Growella
Millennial Homeowner Rates In Q2 2018

Millennials moved into homeownership at the fastest rate of any age group at any time in recorded history last quarter

According to the U.S. Census Bureau’s Vacancies and Homeownership report, homeownership rates among people aged 35 and under jumped 3.4 percent between April and June 2018.

The data point marks the largest one-quarter jump in homeownership among any age cohort since the Census began tracking such data in 1994, and counters common myths about Millennials and their desire to own homes.

Millennials want to buy homes like everyone else does. And, despite commonly-cited hurdles to getting mortgage-approved including student loan debt, irregular and gig income, and the high cost of living, today’s first-time home buyers are skilled at getting it done.

Many first-time buyers are using low- and no-down payment mortgages because they’ve recognized you don’t need a twenty percent down payment to buy a home.

Buyers can use any one of the six commonly-used, government-backed mortgage programs that allow down payments of 3.5 percent or less.

There are also the HomeReady and HomePossible mortgages which offer discounted interest rates and reduced mortgage insurance rates for people with average credit or better; and, the Conventional 97 program which allows three percent down.

A mortgage lender can help you decide which low-down payment program fits your needs best.

Millennial home buyers are also making use of local down payment assistance programs (DPA) to help move from renting into homeownership.

There are more than 600 down payment assistance programs nationwide, and many offer cash grants to buyers who agree to live in their homes for a minimum of five years.

Buying a home is an emotional decision. It’s also a financial one, and Millennials are learning how to access all available programs and monies, and be smart about their financing for a home.

If your plans for later this year call for buying a home, talk to a mortgage lender today. Ask which programs can help you meet your down payment needs and financing goals.

Connect with a lender now.

Today’s Mortgage Rates & Interest Rate Trends

Current Mortgage Rates for July 30, 2018 - Growella
Current Mortgage Rates for July 30, 2018

Mortgage rates are rising today.

For buyers of homes and refinancing households, rate quotes from lenders will be higher as compared to before the weekend.

Rates for adjustable-rate mortgages and fixed-rate mortgages are trending higher.

Active rate shoppers should remember that the Federal Open Market Committee meets for a scheduled two-day meeting later this week, and anytime the Federal Reserve meets, mortgage rates are subject to change quickly.

Today’s rate trends look like this:

Mortgage rates are specific to individuals and their homes, and a ballpark quotes don’t cut it.

To do actual mortgage rate shopping, you’ll need to get an actual mortgage rate quote and the only way to do get an actual quote is to give a full and complete mortgage application.

So, when you get with a lender, plan to set aside a few minutes to do your shopping properly, and see the rates for which you qualify.

Get Today’s Mortgage Rates

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Builders Shrug At Drop In New Home Sales

New Home Sales June 2018 - Growella
New Home Sales – June 2018

Sales of newly-built homes fell to a 8-month low in June, but builders aren’t concerned.

Data from the Census Bureau’s joint report with the U.S. Department of Housing & Urban Development shows 631,000 new homes sold on a seasonally-adjusted basis, marking the lowest annualized figure since October of last year.

At the current pace of sales, the stock of new homes for sale would sell out in 5.7 months — also a high for the year.

Builders don’t seem worried, however.

The most recent homebuilder confidence report from the National Association of Home Builders shows builders expecting a strong close to the summer and a healthy start to fall, buoyed by an uptick in foot traffic through model units that’s hitting five-month highs and the strongest readings for a July since 2005.

Data from the National Association of REALTORS® suggests that housing is doing fine, as well.

The trade group’s Pending Home Sales Index, which tracks the number of homes under contract, increased to a three-month best in June as sales remain in bull market zones and demand stays high.

Real estate markets move quickly and it helps to have an agent on your side, working to help you find the right house, and the right price, at the right time when you need it.

Get with a local real estate agent to help you in your search.

Written by Dan Green

Dan Green is a mortgage lending expert and the founder of Growella. Prior to Growella, Dan was a six-time, top-producing loan officer; and, ranked repeatedly among the top 1% of loan officers nationwide. Dan's home buying expertise has been in print and on TV with The Wall Street Journal, NPR, Forbes, CNBC, and others.

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