With mortgage rates still relatively low, in the mid 3%, the government’s role with the easing of credit requirement and increasing rent rates- equals no equity, home purchasing has led to higher demands amongst millennials, those born between 1980 and mid 2000’s, the largest U.S. generation, representing approximately one-third of the U.S. population. After lagging behind in homeownership, conditions have changed favorably to make home buying more attractive.
Interests in home purchase educational classes have increased significantly within this group; with activities taking place months earlier than the typically real estate season, usually in the Spring. Fueled partly by the FHA recent reduction of mortgage insurance premium, from 5% to 3%, home ownership is now more attainable for not only millennials but for many who were previously priced out of the market due partly to high FHA insurance premiums. And although home prices continue to increase, it has been moderate, making it more affordable to purchase a home. This aided by special financing and assistance programs available through state and local agencies.
Sources: “Millennials are finally entering home-buying market,” latimes.com (Feb 1, 2015), “C.A.R. applauds lower FHA mortgage insurance premiums,” CAR (Jan 8, 2015).