The statistics are in, and millennials simply aren’t buying homes like previous generations. In fact, home ownership has dropped below 64 percent in the United States, which is very close to a 50-year low. But many people already knew this, as it’s been in mass media for a few years already. The big question is why are millennials slow in acquiring a mortgage?

Home & Family Come Later

These days, people are getting married and having children much later in life – especially in comparison to that of their parents and grandparents. Today, the average person waits until nearly thirty before getting married. The exact average age for women is 27, while men average at age 29. Just a decade ago, women were getting married around 23, and men were getting married around 26. In years prior, they were getting married even earlier, and the upward trend in age seems to only be continuing. A lot of millennials say they don’t even plan on getting married, or that they feel marriage is unnecessary. read more

The Fed is raising rates for the third time this year, bringing up incredibly low borrowing costs closer to what would have been considered the norm – before the modern recession took place, that is. Many people find themselves worrying that these Fed rate hikes might drastically affect mortgages, as well as other types of loans. Some have even gone so far as to say these rates could bring our ever-rising economic growth to a halt.

Most people need not fear, because these rate increases are a way to continue the positive effect on the economy which has been occurring since December 2008, when the rates dropped to an all-time low amidst the modern recession. The first two rate hikes occurred at the end of 2015 and 2016. Neither had a negative effect on the economy. In fact, rate hikes help to prevent inflation from rising out of control. Inflation rising too high could trigger another recession, which is the very last thing anyone wants. read more

If you’re in the market to purchase a new home, mortgage rate trends show us that now is the time to do so. The good news for anyone currently in the market for a new home purchased through financing is that the rates on 30 year mortgages are now dropping, according to Freddie Mac. In fact, this is the third straight week we have seen lower interest rates on long term mortgages, with a trend towards reaching the year’s lowest peak.

The rates on 30 year mortgages were at 4.14 last week. This week they have dropped to 4.10 percent. A year ago we saw some of the lowest rates since 1971, with the average interest rates on one of these long term loans sitting at 3.65 percent. read more