Millennials, Minorities Most Likely to Buy Home

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MORTGAGE EXPERT
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For loan originators looking to target the most ripe prospects for home buying, a new survey points to millennials and minorities.

Thirty-eight percent of American consumers say that they are considering making a home purchase over the next two years.

The share reflects consumers who answered
“definitely will,” “probably will” or “maybe” when asked if they plan to buy a house.

But just among millennials, those from 18 years old to 34 years old, the share who are considering buying over the next two years jumped to 58 percent.

Wells Fargo & Co. derived those findings from its third annual How America Views Homeownership survey.

The survey was conducted during the first half of last month. More than 3,400 U.S. adults were interviewed online in English for the survey.

Among black respondents, just over half indicated that they are considering a home purchase, while the share was 47 percent for Hispanics.

Over 90 percent of all those surveyed agreed that getting
a home loan should be a thorough enough process to make sure borrowers understand what they’re getting into.

A similar share agreed that
potential mortgage borrowers should have to prove they can afford a loan.

The biggest reason why respondents don’t currently own a home was difficulty in saving for a down payment — with 23 percent indicating this.

At the same time, 40 percent thought that minimum down payments are at least 20 percent. This misperception was even greater among minorities, with half of Hispanics and nearly half of blacks believing 20 percent is necessary.

Seventeen percent of those surveyed indicated that their current credit rating isn’t good enough to buy a home.

But over a third thought a credit score above 780 is needed and another 43 percent believed a credit score of between 721 and 780 is needed.

Author

Mortgage Daily Staff

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