Gen Z Homebuyers Up Sharply in Q2, Says TransUnion
Gen Z consumers in North America more than doubled year-on-year mortgage spending
Gen Z homebuyers (those born in 1995 or later) are pouring into mortgage financing.
The trend comes from TransUnion’s Q2 Industry Insights Report.
The report signals that this generation has fewer concerns about rising home prices and tight availability.
Heightened credit activity by this group also included credit cards, their most preferred product.
Gen Z homebuyers grew up during the aftermath of the great financial crisis
Their new partiality for credit is surprising. Gen Z members spent their most impressionable years during the period after the financial meltdown in 2008.
According to the report, nearly 55% of Gen Z consumers had balances due on their credit cards.
Falling interest rates in Q2 likely have something to do with the jump in housing mortgages.
Loan Originations Rising
TransUnion expects continued growth in loan originations through the rest of the year.
“The housing market can have high barriers to entry for first-time homebuyers, as low inventory and rising home prices continue to make affordability an issue. However, with interest rates dropping in Q2, we expect originations to grow through the end of the year, largely driven by refinance volume,” Joe Mellman, TransUnion senior vice president, and mortgage business leader, said in the report.
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