Tag Archives: Millennials

About 75 percent of millennials, commonly known as generation Y, would rather apply for a mortgage loan with a traditional bank as opposed to an alternative lender or nonbank institution, according to the survey, indicating that millennials think more like their parents when it comes to obtaining financing for a first home.

Rood, whose two decades of mortgage industry experience include serving as of Senior Director and Principal of Fannie Mae’s eBusiness Division, told radio host Jim Bohannon that the recent surge in apartment construction was largely due to developers taking advantage of millennials who have aspirations of homeownership, but cannot afford it but want to get out of their parents' houses.

What the HVF authors discovered was that the two urban areas examined to determine what impact millennials were having, the Lyn-Lake area of Minneapolis and South Boston, have withstood the housing bust and were at all-time highs.

The study also shows that both, consumers with student loans and without loans were affected by the changes in the economy and shifts in credit access. Consumers ages 18 to 29 with credit obligations like mortgages, credit card, and auto loans declined significantly between 2005 and 2012.

Millennials were found to have to have lower credit scores in 80 percent of the categories that make up traditional credit scores such as mortgage loans, auto loans, credit cards, and other installment loan payment histories because many young adults simply do not have any credit history with these financial products, with the exception of student loans.

Due to current low interest rates and anticipated appreciation rates for the next few years, homeownership is "one of the last legitimate wealth creation opportunities," according to Tim Rood, chairman of Washington, D.C.-based business advisory firm The Collingwood Group in an interview with Westwood One radio host Dirk Van last week.

While housing recovery has generally been uneven for the last few years, the housing market experienced substantial growth in the fourth quarter of 2014 for all five indicators of Trulia's Q4 2014 Housing Barometer, which was released on Thursday. Three of the five indicators – existing home sales, excluding distressed sales; home price level; and delinquency plus foreclosure rate – are all more than three-quarters of the way "back to normal" as of the end of 2014, according to the barometer.

Improvements in economic fundamentals, notably employment growth among millennials, will fuel significant increases in home sales and housing starts and a modest rise in home prices in 2015, according to CoreLogic's 2015 Housing Outlook released earlier this week. Sam Khater, deputy chief economist for CoreLogic, predicted an increase of 9 percent in home sales and a 14 percent spike in housing starts for the coming year in the report.

The year 2015 is gearing up to be a stronger, more expensive housing market powered for the first time by new millennial buyers, according to the Realtor.com 2015 Housing Forecast.

While millennials so far have yet to find their place in the housing market, the stage is set for younger Americans to become the driving force in the residential sector in 2015, according to a forecast from Zillow.