First time home buying – Millennials no longer want to live with their parents.
Millennials now make up the largest group of homebuyers, representing around 45% of all purchase loans. It’s easy to understand why they are ready to house-hunt. A recent report from Harvard’s Joint Center for Housing Studies showed that 11 million people are spending more than half their income on rent.
Some food for thought: 1.5 million households spend more than half their income on rent–up a third in the last decade. @UCLAZimanCenter
— Mercy Housing (@mercyhousing) April 24, 2017
FIRST TIME HOME BUYING PROCESS NOT SIMPLE
But while the desire to buy a home is noticeable, the struggle to secure a loan is real. Zillow estimates 3% fewer homes are on the market compared to a year ago, and yet home values are up 7% over that same time span. To boot, millennials are often first time homebuyers fighting to secure a loan over more seasoned buyers. As the cautionary tale/satirical video above shows, it makes sense why this millennial would end up back at mom and dad’s house.
RatePlug brings mortgage transparency to the home buying process
With RatePlug’s proprietary mortgage technology, first time buyers can leverage ‘What If’ financial scenarios. Cast a full financial picture, faster, with affordability metrics directly embedded within Multiple Listing Services (MLS). Prospective buyers can see total monthly housing payments for every property listed for sale, including current mortgage rates, taxes, assessments, and home owner’s insurance information.