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The Latest: September 3, 2019

The Latest: September 3, 2019

Curious about what’s happening in the world of home loans? Here’s a roundup of recent industry trends, mortgage lending news, and generally helpful-to-know tidbits from around the web.

Gen Z is creeping into the housing market.

Step aside, Millennials: Homebuyers from Generation Z are making their way into the housing market. While Gen Z is still the least likely to have a mortgage (accounting for only 2% of mortgages originated in Q1 2019), the share is predicted to grow as the group ages. A recent report from TransUnion revealed that the number of Gen Z homeowners with a mortgage rose by 112% since last year.

People are nervous about a recession.

More than 50% of Americans who are currently searching for a new home will put their next-home purchase on pause until they see economic recovery.

While the aftermath of the 2008 financial crisis provided some homebuyers with a prime opportunity to purchase a house at a huge discount, experts don’t think another recession will have the same effect. HousingWire reports that 2% of economists, strategists,  academics, and policymakers believe a recession will start this year, but experts also anticipate that tightened lending regulations and a record amount of home equity will likely make for a softer economic blow.

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Homeowners are responding to lower interest rates.

Despite concerns about the economy, lower interest rates are giving the housing market a lift. Pending home sales have advanced to their best level since mid-2017, and new home sales have climbed about 15% so far this year.

The combination of rising home prices and falling rates means that homeowners are sitting on a large amount of home equity. This tappable equity hit a record $6.3 trillion in the second quarter of 2019, according to Black Knight. However, homeowners have been cautious about taking cash out.

 

Whether you’re a part of Gen Z or a Millennial, a first-time homebuyer or a seasoned homebuying pro, Mr. Cooper can be a great partner along your journey to homeownership. Get in touch with one of our mortgage pros to learn more about what it takes to own a home.

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