It’s time to focus on Millennial Home Buyers
According to the Wall Street Journal, first-time home buyers are rushing to buy homes after a decade on the sidelines.
This is exciting news for home builders and Mortgage companies.
According to the article, the number of millennial home buyers and new-owner households was double the number of new-renter households in the first quarter of this year, And, the share of first-time buyers is creeping back toward the historical average. The good news is that mortgages for first-timers are on the rise.
The return of first-time buyers is accelerating. In all, they have accounted for 42% of buyers this year. This is up from 38% in 2015.
Fannie Mae, defines first-time buyers as anyone who hasn’t owned a home in the past three years.
Economists and builders have said that lending standards have started to ease. However, getting a mortgage remains challenging for young buyers with shorter credit histories. In many cases, they are also challenged by student debt.
Mortgage rates are also expected to rise further this year, posing an added challenge. Rates for a 30-year fixed-rate mortgage have risen to 4.05%, up from about 3.5% in November, according to Freddie Mac.
This is a great time for mortgage companies to reach out to millennial first time home buyer prospects and get them on board!
For more information: https://www.wsj.com/articles/the-next-hot-housing-market-starter-homes-1494495003