Millennials are solidly in their home-buying years, but affordability is sidelining some potential buyers. In fact, after rising for the past two years, the millennial homeownership rate dropped in the first quarter of this year, according to the U.S. Census.
Millennials are facing high prices, low inventory and high levels of student loan debt. Now they are also facing higher mortgage interest rates.
Yun’s forecast is for existing-home sales in 2018 to total 5.61 million – up 1.8 percent from 2017. The national median existing-home price is expected to increase around 4.4 percent. In 2017, existing sales increased 1.1 percent and prices rose 5.8 percent.
March buyers got in just before the jump in mortgage interest rates in April. Rates are now at the highest level in four years, prompting more buyers to try to get in before they move even higher.
Regionally, pending home sales in the Northeast fell 5.6 percent and were 8.1 percent below a year ago. In the Midwest, sales rose 2.4 percent monthly and fell 6.0 percent annually. Sale in the South rose 2.5 percent monthly and were 0.3 percent higher than last March. Sales in the West declined 1.1 percent monthly and were 2.2 percent below a year ago.
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