In a report from Real Estate Witch, 96% of millennials say high mortgage interest rates have affected their home-buying plans, and 70% say inflation has affected their plans.
In addition, 76% are concerned the housing market will only get worse.
Of the millennials who plan to buy a home before the end of 2024, half say high interest rates are a barrier to homeownership, and 67% regret not purchasing a home when rates were lower.
Surprisingly, 78% of millennials surveyed say they would consider accepting an interest rate that’s higher than the national rate of about 7% — and 65% would accept an interest rate of 10% or more.
Amazingly, 23% say they would accept a rate of 15% or more.
Millennials may be willing to accept a high interest rate because 68% plan to refinance if rates decrease.
In an effort to limit upfront costs, 47% of millennials plan to put down less than 20% on a home.
Financial concerns run rampant, with one in four millennials (25%) worrying they won’t qualify for a mortgage.
Alarmingly, the percentage of millennials who have $10,000 in debt (57%) is more than double the percentage who have $10,000 in savings (25%).
The study revealed a sense of desperation among prospective millennial homebuyers, with most open to purchasing homes with major issues such as asbestos (67%), mold (62%), and foundation issues (58%).
Even more, 79% of millennials would pay above the asking price to beat the competition for their dream home — down from 85% who said the same in 2023.
Unsurprisingly, 90% of millennial homeowners have regrets about their first home purchase, up from 82% in 2023.
Common regrets include a less-than-ideal location (27%), problematic neighbors (26%), and high interest rates (25%).
Photo: Wyron A