Over all ages, 56% said that refinancing to a lower mortgage interest rate is important or extremely important for their financial health, while 25% called it ‘extremely important’.
“These findings reveal a generation of home buyers who take significant financial risks in the current market,” said Ethan Winchell, co-founder and president of TrueWork. “Although the homeowner remains a priority, younger buyers bet on the hope that interest rates will fall considerably enough to make refinancing viable.”
Truework co-founder and Chief Technology Officer Victor KabdeBon emphasized how risky it is to base financial stability on the prospect of future refinancing.
“Most analysts predict (drastically lower mortgage interest rate will not happen quickly),” he said. “And those who want to buy today with whom we have spoken, pronounced frustration about how high rates have limited the houses they can afford to consider.”
The survey also showed a generation gap in stress and trust.
One in three gene Z and Millennial buyers reported “Significant Stress” during the home heading process, compared to 22% of the boomers.
Among the buyers of Gen Z, 27% felt pessimistic about their financial future after buying a house.
Other findings were:
- 15% of the millennials that say that they “were not at all self -confident” in understanding their mortgage conditions, compared to 11% of the gene buyers and 8% of Gen X and Boomers.
- 19% of the buyers of Gen Z who said they felt financially uncertain when buying, compared to 8% of the Boomers.
- 37% of Gen Z and 32% of the millennial first buyers who consider the process more difficult than expected, compared to 19% of Gen X and 7% of Boomers.
In general, 90% of respondents reported stress in the buying process – and 30% described it as ‘significant stress’.
Buyers from the west coast reported the highest stress levels, with the top stress sources for all demography as paperwork and limited inventory.
Yet 86% of the buyers said they felt financially safe during the purchase and 82% said they were optimistic about their financial future.
“It is interesting that house buyers in the current market are not only optimistic about their financial future, but also financially safe – although this financial image seems to depend on an expected fall in interest rates,” Winchell said.
“The need and a realization that prices are not falling, however, people seem to continue to push people to follow the American dream of homeowners at all costs.”
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