Current Homeowners Optimistic About Buying A New Home In 2024

High rates and soaring prices are preventing many Americans from achieving the dream of homeownership, but current homeowners are optimistic about the housing market. TD Bank surveyed nearly 2,000 homeowners across the nation and found that a majority (67%) think buying a home is still attainable, while 38% plan to buy a new house in the next year. Millennial and Gen Z homeowners were the most optimistic about homebuying, regardless of the ongoing affordability crisis, lagging existing and new home sales, and 7% rates. “Although many of the challenges impacting homeownership are leaving some homeowners weary about the market, it’s great to see borrowers, especially younger generations, remaining steadfast in navigating the market to find a home that works for…

PrimeLending Launches New Home Equity Loan Product

PrimeLending introduced a new home equity loan product that allows Americans to combat inflation and high credit card debt with the value stored in their homes. Borrowers can convert home equity into cash, which they can use for anything, including managing finances, covering expenses, and consolidating high-interest debt. Homeowners can access a portion of their home’s value and repay the loan at a fixed-rate over a 30-year term. The cash is distributed as a lump sum. PrimeLending pointed to the financial strain Americans face every day as inflation remains elevated. Credit card balances are up as it gets harder to budget for daily necessities. At the same time, average APRs are at their highest point since the Fed began tracking…

Rates Dip Below 7%

Average mortgage rates dipped below 7% last week, giving buyers some breathing room as they navigate a high-priced housing market. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.94%, down from the week prior’s 7.02%. A year ago at this time, the 30-year FRM averaged 6.57%. The 15-year also fell, down from last week’s 6.24% to 6.38%. A year ago at this time it was 5.97%. “Spring homebuyers received an unexpected windfall this week, as mortgage rates fell below the 7% threshold for the first time in over a month,” said Sam Khater, Freddie Mac’s Chief Economist. “Although this week’s data on previously owned home sales showed a decline, total inventory of both new and existing…

Millennials, Gen Z Dominate Mortgage Market

More mortgages are being taken out by Millennial and Gen Z buyers than their older counterparts, a trend boosted by Zoomers’ thirst for homeownership. A new analysis from Redfin found that two in five — just shy of 40% — of new mortgages issued in 2023 went to homebuyers under 35, while an additional 26.5% went to buyers in the 35-44 age range. Middle-aged buyers between 45 and 54 grabbed just 16.1% of new mortgages, followed by 55-64-year-olds (10.8%) and 65-74-year-olds (5.4%). Younger buyers are dominating the mortgage market due to two major factors: prime homebuying years and the prevalence of cash among older buyers. Younger Americans are always primed to take these top spots because people tend to take…

Purchase Applications Slip, Refis See Boost

Mortgage applications rose slightly last week, buoyed by a refi turnaround even as purchase demand faltered. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — rose by 0.5%, adding to last week’s 2.6% increase. Adjusted purchase applications declined, however, by 2%, while the unadjusted index was down 2% and 17% lower YOY. Refinances instead drove the rising data this week. Rates declined for a second week, down another 10 BPS to 7.08%, their lowest level since April. “The decline in rates led to a small boost to refinance applications, including another strong week for VA refinances. However, the overall level of refinance activity remains low. Purchase applications…

Foreclosures Up 3% In Q1 2024

Foreclosures increased nationwide in Q1 2024 as mounting affordability pressures push homeowners into situations where they are unable to pay their mortgages. According to ATTOM’s latest Foreclosure Market Report, a total of 95,349 U.S. properties had foreclosure filings during the first quarter. This is up 3% from Q4 2023, but down under 1% YOY. “Q1 2024’s foreclosure data reveals a market in transition, with slight increases in filings and starts, alongside a notable decrease in REO properties,” explained Rob Barber, CEO at ATTOM. “While foreclosures remain relatively stable, we’re closely monitoring these trends. Homeowners continue to hold significant equity, contributing to a persistently hot housing market.” REOs were up 7% from the previous quarter but plummeted by 20% YOY. Foreclosure…

Metros With Fewer Mortgages See Less Rate Lock-In

Inventory is doing best in cities with fewer mortgages and older homeowners, reinforcing the impact of high interest rates on the market. That’s according to a new report from Zillow, which found that metros where more homes are owned outright are seeing the fastest growth in new listings. Pittsburgh, Buffalo, and Cleveland have the highest share of homeowners free from rate lock-in.  Generationally, Baby Boomers are the most likely not to be impacted by mortgage rates when deciding to purchase a home. That’s compared to just 6% of Millennial homeowners. More than 10 million homeowners are mortgage-free and could afford monthly payments if they decided to move today. This demographic skews older and tends to live in more affordable markets,…

The Racial Homeownership Gap Is Worst For Black Millennials

While the racial homeownership gap exists in every generation, Black Millennials have it worse off than any other age group. That’s according to a new analysis from Redfin, which found that just one-third of Black Millennials own their home (33%), compared to 65% of white Millennials, the largest divide of any generation. By comparison, 52% of Black Gen Xers own their home, compared to 80% of white Gen Xers. Six in ten Black Boomers own their home, while 85% of white Boomers do. White and Black adult Gen Zers own their homes at rates around 30% and 16%, respectively – not as bad as the Millennial divide, but still significant. Black Americans face challenges ranging from the impact of racist…

TD Bank Devotes $10B To Residential Lending In Underserved Communities

TD Bank has devoted about $20 billion to programs that serve diverse and minority communities, with a large chunk going to support residential lending. Half of the designated funds are classified for residential lending for low- and moderate-income and/or minority borrowers, according to a press release.  This includes both first-time homebuyer and home equity loans, and particularly targets the Boston, Baltimore, D.C., New York, Miami, and Philadelphia markets.  “At TD Bank, we know our success is tied directly to the people and the communities we serve. When they flourish, we succeed,” said Leo Salom, President and CEO. “One of our primary objectives as a purpose-driven bank is to help power economic opportunities that help low- and moderate-income, diverse, and underserved…

Empty-Nesters Beat Out Millennials With Kids For America’s Biggest Homes

The generational real estate showdown is still underway, and the latest battleground is large homes. A new report from Redfin found that Baby Boomers with empty nests own 28% of the nation’s large homes, while Millennials with kids own just 14%.  This a huge turnaround in the last ten years, as a decade ago, younger adults with children were just as likely to own large homes as their parents. Redfin defined “empty nesters” as households headed by Baby Boomers that report only 1-2 adults living in the home, and based on the number of bedrooms, with three or more being considered large. Part of the problem is the current state of the housing market. Many Baby Boomers own their homes…