Per an online survey conducted by credit rating agency TransUnion which collated responses from 1,283 US consumer respondents, 42 percent of millennials decided to delay their home buying intent owing to the Fed rate hike last December.
Why is this so?
Private lenders usually use Fed rates as benchmark for their mortgage rate offers. So when the announcement came of the said hike, millennials started to get wary of the potentially higher rates.
Still, despite this, credit is not millennials’ top concern about homebuying. Many of them are worried about paying for home maintenance and home improvements when they move in. This, despite the subprime threat that is currently plaguing about 38 percent of the demographic.
If you yourself are preparing to borrow, use the following time-tested advice to build credit before you apply.
- Check credit before applying.This will help you ensure that your record is free from any errors which may have affected your score. Dispute any inconsistencies in your record.
- Get a pre-approval.Knowing the estimated amount you can borrow can help you find a home you can afford.This will also help you measure your mortgage debt against your overall income and if it is within a manageable, sustainable range, considering your other debts.
- Have a budget for other costs.It’s good to have money set aside for both the expected and unforeseen. Remember, it’s not just the mortgage payments, but the overall cost of ownership that you need to think about once you move in. That includes repairs, maintenance, taxes, and association fees, among others.
About the Survey
US consumers aged 18 and above were included in the survey from the period of February 15 to February 17, 2017.