According to TransUnion – 55% of people shopping for mortgages in the first quarter of 2017 were non-homeowners (renters). This is a 50% jump compared to last year and a 45% jump compared to 2015. Digging deeper in to the study you’ll find that 29% of renters who shopped for a mortgage were millennials, up slightly from the 28% in 2016 and 27% in 2015.
Official TransUnion Statement:
“This new uptick in mortgage shopping could be a precursor to further declines in occupancy, which would impact rent growth—and ultimately revenue—for multifamily property owners. In anticipation of the potential shift, owners and property managers should be offering the right amenities and programs designed to attract renters,” TransUnion said in a statement. A surge in Millennial home buyers is essential to a health housing market. Without Millennial home buyers the housing and mortgage industry will decline as transaction volume will diminish. It will also prevent established homeowners from moving up to larger more expensive homes if Millennials are not active in the purchase market. The best mortgage lenders are eager to attract new First Time Home Buyers (FTHB) with incentives to jump into the market. This means FTHB receive slightly better terms than those looking to refinance their current mortgage.
Michael Doherty, senior vice president of TransUnion’s rental screening solutions group, added, “Property management companies should consider new services such as rental payment reporting to credit bureaus to entice renters into their multifamily properties. In many cases, renters are more likely to choose a unit if their property manager reports their rental payments. Our survey data show that most renter prioritize their rental payments and want their payments reported.”
Here Are The Benefits Of Owning A Home:
For the last one hundred years the American Dream has always been to own your own home. After the financial crisis of 2008 that dream died for a lot of people and many were turned off by the possibility of owning a home. Values were declining and people were getting laid off. It was a fairly bleak time. However things are starting to change. More and more people are coming back to the market and the interest in homeownership is growing every year. Here are the benefits of owning your own home.
- Homeownership is a great way to build wealth
- The equity that you building in your home can be used to improve your financial position
- Homeownership creates a sense of pride in what you own
- Provided you pay your mortgage on time the home is yours and no one else’s
As we move further away from the 2008 financial crisis we’re starting to see a lot more loan programs for First Time Home Buyers. Mortgage lenders are trying to find ways to enable First Time Home Buyers so that they can buy their first home. Low down payments and credit score flexibility are two key components to helps people buy their first home. If you are interest in buying a home make sure you discuss all the options your lender has and see if owning a home makes sense for your current financial situation.
Current Mortgage Rates:
If you are looking for current mortgage rates we have you covered on our current mortgage rates page. We’ll not only keep you up-to-date with where mortgage rates are at but also cover important bond market information and general economic news that may influence mortgage rates.