Young Americans are convinced that the economic conditions are right to become home owners and will be likely to use a mortgage professional in the process.
A survey by TD Bank reveals that 90% of millennials believe that now is a good time to buy a home and 51% plan to do so within the next year.
The desire of most potential first-time buyers is driven by recently increased interest rates with more rises to come and 94% believe that the housing market will improve or stay the same over the next 6 months.
“Although impending rate increases worry some potential homebuyers, they should keep in mind that rate hikes are a sign of renewed confidence in our economy and job market,” said Ryan Bailey, EVP, Retail Lending Director, TD Bank. “Our survey data tells us that millennials are seizing this opportunity and leading the way with a favorable outlook on homebuying this season and beyond.”
The lender found that young buyers want single-family homes, 48% opting for newly-built homes and 29% leveraging an upfront mortgage for construction.
TD’s Mortgage Service Index also reveals that just 17% of borrowers applied for their mortgage by phone and 19% online; 64% applied in person, highlighting the continued importance of direct contact with mortgage brokers and lenders.
The majority of buyers (88%) felt that they had enough information about the mortgage process although around half would like more to be available online. More than three quarters said that their experience with their lender was positive.