Low mortgage rates helping Millennials become homeowners

Low mortgage rates helping Millennials become homeowners

Low mortgage rates helping Millennials become homeowners
As more Millennials come of age, the demand from that generation for new homes is rising rapidly. The combination of the pandemic and the current favorability of mortgage rates is driving this demand even higher. According to a new survey conducted by Realtor.com and HarrisX, 68 percent of home buyers say shelter-in-place orders have helped them save for their down payment.

“With little to no equity to leverage, millennial home buyers tend to take out larger loans,” said Danielle Hale, chief economist at Realtor.com. “Historically low rates are making this more managable, even with rising home prices.”

Nearly three-fourths of millennial respondents to the survey also report that working remotely these days is motivating them to purchase a home now and allows greater flexibility in searching for places to live.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.5 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.