Skip to main content

22% Of Millennials Buying A Home In The Next 12 Months

By Dan Green

More Millennials plan to buy homes in the next 12 months than all other ages combined; Today’s live mortgage rates; Fannie Mae loosens income requirements for HomeReady mortgages.

Millennials Leaning In To Homeownership

Millennials buying homes more than other age groups - Growella
Millennials buying homes more than other age groups

Millennials want to stop renting homes, and start owning them.

According to the National Association of Homebuilders (NAHB), 22 percent of consumers aged 35 or younger plan to buy a home in the next year, which marks a three percentage point increase as compared to the quarter prior.

Millennial home buyers outnumber all other age cohorts combined, almost; and the 35-and-under crowd is the only age group to report an increase in homeownership aspirations.

Millennials drive today’s U.S. housing market.

The data comes from the NAHB’s most recent Housing Trends Report, a quarterly survey of more than 15,000 consumers nationwide.

The survey reports on homeownership trends and aspirations, and consumer sentiment; and, the most recent published report shows that more than half of the Millennials who plan to buy home this year are already active in their search.

Rising mortgage rates and home values have done little to damper buyer enthusiasm. Demand for homes remains high despite a shortage of available properties, and buyers are using low- and no-down payment mortgages to help get mortgage-approved.

Loans including the HomeReady and Home Possible programs from Fannie Mae and Freddie Mac, respectively; and, the FHA loan, VA loan, and USDA loan each ask for down payments of less than five percent.

The Conventional 97 is another popular mortgage loan. The Conventional 97 requires just 3 percent down and is available at most mortgage lenders.

Buyers are also taking advantage of the growth in down payment assistance programs backed by state and local governments. There are now more than 600 down payment assistance programs nationwide and many loans can get “waived” when a buyer stays in their home for a period of at least five years.

For renters who want to buy, there are many ways to purchase a home. Twenty-percent down is not required, down payment assistance is available, and — sometimes — the most difficult step is knowing how to start.

So, connect with a loan officer who can help you make sense of your choices. And, search for downpayment assistance programs to see what’s available.

Search for down payment assistance programs here.

Today’s Mortgage Rates & Interest Rate Trends

Current Mortgage Rates for August 06, 2018 - Growella
Current Mortgage Rates for August 06, 2018

Mortgage rates are improving today.

For home buyers and refinancing households, interest rates are lower today as compared to Friday.

Pricing is better for conventional, FHA, USDA, and VA mortgage loans; and, for all fixed-rate and adjustable rate mortgages.

Rates trended higher over the last two weeks. When mortgage rates rise, it changes the math of how much house you can afford; and, makes refinancing less attractive to households looking to cash out, convert from an ARM to a fixed, or cancel FHA MIP.

Today’s mortgage rates are moving lower.

Mortgage rates are custom-made, and vary by borrower and by home. The rate quotes you get from a mortgage lender won’t be the same as what your neighbor gets.

Your rate quote will also vary by date and time. Mortgage rates are based on the price of mortgage-backed bonds and pricing changes multiple times per day.

The rates quoted to you in the before noon won’t be the same as the rates quoted to you after noon

Literally, you can’t sleep on mortgage rates. By morning, they’ll be different. So shop quickly and look for your preferred combination of rates, fees, and service.

Get Today’s Mortgage Rates

Click For Rates!

Mortgage Standards Loosen in 48,000 Census Tracts

Fannie Mae widens HomeReady eligibility standards - Growella
Fannie Mae widens HomeReady eligibility standards

The HomeReady Mortgage program loosened its eligibility standards to include more buyers.

Effective August 1, 2018, Fannie Mae changed the mortgage guidelines for its HomeReady home loan program, reducing and removing income standards in more than 48,000 census tracts nationwide.

Mortgage rates drop one percentage point or more for eligible buyers.

Fannie Mae’s HomeReady mortgage is low-down payment loan. It requires a minimum 3 percent down payment, with no maximum down payment requirement.

The program is aimed at buyers with low and moderate income, but can also be used by any home buyers to get lower monthly payments or to afford more home.

The program’s income requirements can require some math.

You’re HomeReady-eligible if your household income is eighty percent or less than the census tract’s median income; or, if the minority density in your census tract is thirty percent or higher and the median income level is below the area’s median income.

Keep it simple with this HomeReady eligibility lookup tool.

Additionally, more than 23,000 census tracts are automatically HomeReady-eligible, which means that all home buyers in the area are eligible to use the program.

Home buyers — first-timers or repeat — should always check heir eligibility for home affordability home loans such as Fannie Mae’s HomeReady and Freddie Mac’s Home Possible. Programs change frequently and the savings can be significant.

Talk to a loan officer about whether you can use Fannie Mae’s HomeReady mortgage to buy your next home. Connect with a mortgage lender here.

Written by Dan Green

Dan Green is a personal finance expert and the founder of Growella. His expertise has been cited by The Wall Street, NPR, and CNBC; and, his advice has helped millions of people make better choices with their money. Dan hosts the mortgage news show "The Mortgage Minute-and-a-Half" three times weekly on YouTube.

Dan Green Growella Headshot