Millennials form increasing percentage of home buyers
As an increasing number of young people in Florida and across the country purchase homes, the mortgage industry may be looking to escalate its technical sophistication. Many millennials have expressed a preference for a digital process that is faster and more efficient. In June 2018, 91 percent of closed loans were made to millennials for purchases of new homes. This marked an increase from 81 percent in January 2018 and 90 percent in May.
Mortgage company officials noted that the market is competitive and that millennial purchase interests and trends may determine the future of the industry. They noted that digital mortgages are being developed to appeal to millennial buyers who are accustomed to a comprehensive, all-online experience. Because the largest number of people buying homes now is millennials and this trend is expected to continue, their preferences could reshape many of the norms of the industry.
On average, it takes 41 days to close a new real estate loan for millennial buyers, and refinance loans take an average of 45 days to close. While many millennials have hesitated to buy homes due to debt burdens, the average credit score for their generation headed upward again, climbing to 723 in June from 721 in May. While millennials are the overwhelming majority of home purchasers across the country, some areas showed particularly strong growth in millennial purchases, including areas in West Virginia, South Dakota, Iowa and North Dakota.
When people are considering a home purchase to enter the world of residential real estate for themselves, they may face questions about a number of issues from home inspections to dealing with contractors. As a home is often a person’s largest single investment, getting it right is important. A real estate attorney may work with a home purchaser to deal with issues related to contracts, title issues and other concerns.