Gen Z accounted for one in five purchase mortgage rate locks in the second quarter, the largest share on record, according to a new data report from Intercontinental Exchange Inc. (NYSE: ICE).
The report found this youthful generation represents nearly one-third of all first-time homebuyer loans and 27% of FHA purchase lending. One in five Gen Z buyers relied on either a family gift (13%) or a loan (8%) to make a down payment.
“Gen Z’s rise to nearly 20% of rate locks is one of the clearest signs yet of a generational handoff in the homebuying market,” said Andy Walden, head of mortgage and housing market research at ICE. “Despite facing one of the tougher affordability environments in decades, younger buyers are finding ways to become homeowners.”
“For lenders and servicers, the generational shift in the borrower base is more than a demographic footnote, it’s a competitive inflection point,” added Bob Hart, President of ICE Mortgage Technology. “As Gen Z enters the market in force, organizations that have modernized their technology stack and customer engagement capabilities will be far better positioned to serve the next wave of homebuyers.”
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