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Millennials want to own – they just can’t afford it

Posted by Mehran Aram on Sat, Sep 7, 2019 @ 07:09 AM

Although an increasing number of young adults say home ownership is among their top goals, data shows that unaffordable prices and mounting student loan debt is making this goal harder to achieve. In a survey conducted jointly by CoreLogic and RTi Research shows that more than a quarter of millennials are interested in purchasing a home within the next year.

The increase in Millennial home buyers entering the market putting increased pressure on home prices as well.

“A growing number of millennials are expressing an interest in buying homes, reinforcing the theory that this cohort is continuing to engage within the housing market,” said Frank Martell, president and CEO of CoreLogic. “But with so few homes available for sale, the imbalance has created an affordability crisis that is getting worse every day.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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.

Topics: Millennials, home purchase, Housing Market, CoreLogic, home ownership, Mortgage rates, Housing Affordability, Millennial Homeowners, Affordability, Young Adults

Younger homebuyers work harder than most to find the right home

Posted by Mehran Aram on Tue, Apr 9, 2019 @ 06:04 AM

When it comes to searching for the right place to live, millennials are willing to put in the leg-work. According to a Zillow Group Consumer Housing Trends Report, millennial home buyers are extremely motivated – going on more tours, doing more research and more willing to make repairs than older generations.

The average millennial goes on 4.4 home tours, more than their older counterparts. 42.7 percent of millennials go to at least two open houses, far higher than Gen X’ers (30.4 percent) and baby boomers (24.9 percent).

Millennials also do more research including reading online reviews of agents, visiting their broker’s website and studying the market.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 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.

Topics: Millennials, Zillow, Mortgage rates, open house, Millennial Homeowners, Consumer Housing Trends

Millennial homeowners have regrets

Posted by Mehran Aram on Mon, Mar 4, 2019 @ 05:03 AM

A new survey shows that the vast majority of millennials who own a home have buyer's remorse. This is according to new data put forth last week by Bankrate.com. Nearly two-thirds or 63 percent of millennials who purchased a home over the past few years had regrets about buying, more than any other age group. Millennials, as defined by the survey, are those aged 23 to 38.

Among the top reasons younger homebuyers regretted their decision was the costs associated with maintaining a property. Other regrets included the type and location of the home they purchased. While mortgage rates are quite low, especially compared to the rates their parents paid in the 1980’s, home prices have reason beyond affordable levels in many markets.

Despite the buyer's remorse, the survey still showed that 79 percent of respondents continue to believe that homeownership is a part of the “American Dream”.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 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.

Topics: Millennials, Mortgage rates, Millennial Homeowners