RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Millennials Put Home-Buying on Hold After Last Year’s Rate Hike

Home Latest News
April 16, 2017
Reading Time: 2 mins read
Millennials Put Home-Buying on Hold After Last Year’s Rate Hike

A businesswoman watches a businessman use a rope to climb a very large percentage sign representing the impending increase in interest rates. There is a city skyline in the background with stormy clouds above.

Will more interest rate hikes this year turn millennials off to buying a home?

A sizable share of millennials recently surveyed by TransUnion decided to put off buying a home after learning of the interest rate hike in 2016, with 42 percent reporting that the raise in rate influenced their plans.

The key interest rate, which was increased one-quarter percentage point in December and again in March, indirectly leads the movement of mortgage rates. Mortgage rates, though still at historic lows, soared at the end of 2016, giving first-time homebuyers—mostly millennials—pause about their spring home search, according to a January report by realtor.comĀ®.

“Higher rates make qualifying for a mortgage and finding affordable inventory more challenging,” says Jonathan Smoke, chief economist of realtor.com, of the report.

Homebuyers’ apprehension subsided by February, however, when the majority of those surveyed by Zillow reported planning to move ahead with purchasing, even if their monthly mortgage payments grow as a result of rising rates.

“As rates rise this year, first-time buyers and those looking to buy in expensive markets where affordability is already an issue will feel the pinch of higher rates on their budget,” says Erin Lantz, vice president of Mortgages for Zillow Group, of the survey. “For most borrowers, there is quite a bit of head room for rates to rise before home-buying becomes unaffordable.”

Demand has only picked up now that the spring home-buying and -selling season is underway—and with first-time homebuyers facing severe competition due to few affordable homes, mortgage rates, for now, may be less of a concern. In fact, 69 percent of those in the TransUnion survey are more focused on how they will pay for home improvements, and 67 percent are more focused on how they will pay for home maintenance.

The Federal Reserve has indicated two or three more hikes could occur in 2017.

Source: TransUnion

For the latest real estate news and trends, bookmarkĀ RISMedia.com.

Tags: Federal ReserveInterest RatesMillennial HomebuyersMortgage Ratesrealtor.com®TransUnionZillow
ShareTweetShare

Related Posts

NAR
Industry News

NAR Praises ā€˜Big Beautiful Bill’ as ‘Major Win’ for Real Estate

July 3, 2025
Mortgage Rates Post Biggest Drop Since March 2025
Industry News

Mortgage Rates Post Biggest Drop Since March 2025

July 3, 2025
Upbeat New Jobs Report in June Leaves Housing in ā€˜Holding Pattern’
Agents

Upbeat New Jobs Report in June Leaves Housing in ā€˜Holding Pattern’

July 3, 2025
The AI Advantage: Experts Share How AI Is Revolutionizing Real Estate—and Why the Potential for Agents Is Limitless
Best Practices

The AI Advantage: Experts Share How AI Is Revolutionizing Real Estate—and Why the Potential for Agents Is Limitless

July 3, 2025
The 3 ā€˜Hottest’ Markets in Each Region This Spring
Agents

The 3 ā€˜Hottest’ Markets in Each Region This Spring

July 2, 2025
5 Signs a Senior Homeowner May Be Ready to Downsize
Agents

5 Signs a Senior Homeowner May Be Ready to Downsize

July 2, 2025
Please login to join discussion
Tip of the Day

4 Ways to Market to the Next Generation of Buyers

Every new generation has a chance to upend the status quo, introduce new ideas into the zeitgeist and radically shift the priorities of a society. Read more.

Business Tip of the Day provided by

Recent Posts

  • NAR Praises ā€˜Big Beautiful Bill’ as ‘Major Win’ for Real Estate
  • Mortgage Rates Post Biggest Drop Since March 2025
  • Upbeat New Jobs Report in June Leaves Housing in ā€˜Holding Pattern’

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

Ā© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTORĀ® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2025 Newsmakers
    • 2024 Newsmakers
    • 2023 Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2025 Power Broker
    • 2024 Power Broker
    • 2023 Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

Ā© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

X