Why are millennials struggling to obtain mortgages despite improving conditions?
Posted on Friday, May 20, 2016 at 4:40:38 PM
Millennials are reaching the age of marriage, children and homeownership, and many have stated that they intend to purchase a house in the near future. Despite the improved market conditions in residential financing, though, many have struggled to get approved on a mortgage.
CNBC reported that the mortgage industry still has a lot of catching up to do, as 91 percent of 87 million millennials are looking to obtain a house. Yet, very few players in the industry are actually lending to these individuals. Whether it is because of college debt or a lack of credit histories, millennials are indeed struggling to get residential real estate loans today, and this cannot continue to be the case for long, should lenders want to maintain a healthy housing industry.
Millennials might be better served by local, smaller community banks when looking to obtain a mortgage, as these institutions tend to provide more personalized service to their clientele. The housing market will need to continue thriving to propel the economy in the right direction, and keeping rates and terms preferable on mortgages will certainly help to maintain that positive trend.