Millennial homeownership is actually on the decline, down 0.7 percentage points to 34.1%, according to the latest information from the U.S. Census Bureau.
Despite uncertainties such as rapidly rising home prices, many surveyed households still believe now is a good time to buy a home, according to the National Association of Realtors. The one demographic that doesn’t agree? Millennials. There is, however, good news for Nashville millennial homebuyers who do step into homeownership.
A study conducted by Genworth Mortgage Insurance at the 2016 Mortgage Bankers Association Secondary Conference in New York City showed that, while Millennials delayed homeownership longer than other generations, the industry expects that they are about to move into the housing market.
And, they’re well-equipped to deal with the debt.
Why? Millennial credit scores continue to increase, according to the most-recent Ellie Mae Millennial Tracker, an interactive online tool that provides access to demographic data about this new generation of homebuyers.
The average FICO score of Millennial borrowers who closed on a mortgage in June rose to 723, up from 722 in May and 721 in April. The FICO mortgage score is between 300 and 850. Higher scores indicate lower credit risk.
Credit scores, along with saving for a down payment, are considered a stumbling block for first-time buyers, according to a survey by TransUnion.
But is it good news? Or, conversely, does it just show a tightening of credit, which could be locking Millennials out of the housing market.
For the third month in a row, FHA made up 37% of closed loans in June among Millennial homebuyers. This is compared to 60% who used conventional loans.
Continue reading: Housing Wire