{"id":355979,"date":"2025-11-07T10:36:41","date_gmt":"2025-11-07T15:36:41","guid":{"rendered":"https:\/\/www.reviews.com\/?p=355979"},"modified":"2025-11-07T10:36:42","modified_gmt":"2025-11-07T15:36:42","slug":"study-people-under-35-are-less-confident-theyll-be-able-to-buy-a-home","status":"publish","type":"post","link":"https:\/\/www.reviews.com\/insurance\/homeowners\/study-people-under-35-are-less-confident-theyll-be-able-to-buy-a-home\/","title":{"rendered":"Study: People Under 35 Are Less Confident Than Ever They&#8217;ll Be Able To Buy A Home"},"content":{"rendered":"<p>To gauge current home-buying sentiment, we triangulate leading indicators and hard market data: <a href=\"https:\/\/www.fanniemae.com\">Fannie Mae\u2019s Home Purchase Sentiment Index (HPSI)<\/a>, University of Michigan\u2019s Buying Conditions for Houses, The Conference Board\u2019s buying\u2011plans series, and NAR market metrics, paired with mortgage\u2011rate benchmarks (the weekly <a href=\"https:\/\/www.freddiemac.com\/pmms\">Freddie Mac PMMS<\/a>, <a href=\"https:\/\/www.mba.org\">MBA Weekly Applications Survey<\/a>, and daily <a href=\"https:\/\/www.optimalblue.com\/indices\/\">OBMMI<\/a>) plus home\u2011price indices (<a href=\"https:\/\/www.fhfa.gov\/data\/hpi\">FHFA HPI<\/a> and <a href=\"https:\/\/www.spglobal.com\/spdji\/en\/indices\/indicators\/sp-corelogic-case-shiller-us-national-home-price-nsa-index\/\">S&#038;P CoreLogic Case\u2011Shiller<\/a>). As of early November 2025, average 30\u2011year fixed mortgage rates sit broadly in the mid\u20116% to low\u20117% range nationally, with 15\u2011year fixed typically ~0.75\u20131.0 percentage point lower and common ARMs ~0.5\u20131.0 point below 30\u2011year fixed for well\u2011qualified borrowers, per PMMS\/OBMMI. Price gauges show national prices near record highs, and NAR reported a record median existing\u2011home price of about $426,900 in June 2024, underscoring persistent affordability headwinds (<a href=\"https:\/\/www.nar.realtor\">NAR Existing\u2011Home Sales<\/a>).<\/p>\n\n\n<h2>Table of Contents<\/h2>\n<ul>\n<li><a href=\"#study-findings\">Study Findings<\/a><\/li>\n<li><a href=\"#affordability-factors\">Affordability Factors<\/a><\/li>\n<li><a href=\"#home-buyer-demographics\">Home Buyer Demographics<\/a><\/li>\n<li><a href=\"#study-methodology\">Study Methodology<\/a><\/li>\n<li><a href=\"#key-challenges\">Key Challenges<\/a><\/li>\n<\/ul>\n\n\n<h2 id=\"study-findings\">Study Findings<\/h2>\n<ul>\n<li><strong>Fannie Mae\u2019s Home Purchase Sentiment Index:<\/strong> The \u201cgood time to buy\u201d share remains near historic lows, with only about one in five consumers saying it\u2019s a good time to buy through 2024 and into 2025, reflecting high rates and prices (<a href=\"https:\/\/www.fanniemae.com\">HPSI<\/a>).<\/li>\n<li><strong>University of Michigan\u2019s Index:<\/strong> Reported home\u2011buying conditions have hovered near multi\u2011decade lows as consumers cite elevated prices and financing costs; this aligns with weak buyer sentiment captured in the HPSI and price\/rate levels referenced above.<\/li>\n<li><strong>The Conference Board:<\/strong> Buying\u2011plans for homes typically sit around roughly 4%\u20135% of consumers planning to purchase within six months\u2014below pre\u2011pandemic norms\u2014consistent with subdued demand signals seen in mortgage application data from the <a href=\"https:\/\/www.mba.org\">MBA Weekly Applications Survey<\/a>.<\/li>\n<li><strong>Gender Gap:<\/strong> Recent national buyer surveys show women are less likely than men to be \u201cvery confident\u201d about qualifying for a mortgage, affording a down payment, and competing in offers\u2014gaps commonly in the mid\u2011single\u2011digit to low\u2011teens percentage points. Despite this, single women again outpaced single men among recent purchasers (<a href=\"https:\/\/www.zillow.com\/research\/consumer-housing-trends-report\/\">Zillow Consumer Housing Trends Report 2024<\/a>; <a href=\"https:\/\/www.nar.realtor\">NAR Profile highlights<\/a>).<\/li>\n<\/ul>\n\n<h2 id=\"affordability-factors\">Affordability Factors<\/h2>\n<p>Financing costs remain a primary constraint. As of early November 2025, national benchmarks place the average 30\u2011year fixed mortgage rate in the mid\u20116% to low\u20117% range, while 15\u2011year fixed averages generally run ~0.75\u20131.0 percentage point lower and popular ARMs are ~0.5\u20131.0 point below 30\u2011year fixed for well\u2011qualified borrowers (<a href=\"https:\/\/www.freddiemac.com\/pmms\">PMMS<\/a>; <a href=\"https:\/\/www.optimalblue.com\/indices\/\">OBMMI<\/a>). Given payment sensitivity, a 1.0 percentage\u2011point rate change shifts the principal\u2011and\u2011interest on a $400,000 30\u2011year loan by roughly $260\u2013$270 per month. Elevated mortgage\u2013Treasury spreads since 2022 have kept rates high relative to the 10\u2011year yield (<a href=\"https:\/\/www.federalreserve.gov\/releases\/h15\/\">Fed H.15<\/a>). Application\u2011rate readings and points\/fees vary by tracker and borrower profile; consult PMMS\/MBA for weekly averages and OBMMI for intraday color (<a href=\"https:\/\/www.mba.org\">MBA<\/a>).<\/p>\n<p>Home prices compound the affordability squeeze. National repeat\u2011sales indices show prices at or near record highs with year\u2011over\u2011year gains in the mid\u2011single digits by late 2024 (<a href=\"https:\/\/www.fhfa.gov\/data\/hpi\">FHFA HPI<\/a>; <a href=\"https:\/\/www.spglobal.com\/spdji\/en\/indices\/indicators\/sp-corelogic-case-shiller-us-national-home-price-nsa-index\/\">Case\u2011Shiller<\/a>). NAR reported the national median existing\u2011home price hit an all\u2011time monthly high of about $426,900 in June 2024 before seasonal cooling (<a href=\"https:\/\/www.nar.realtor\">NAR<\/a>). Limited inventory\u2014especially in entry\u2011level segments\u2014continues to support prices despite slower sales (<a href=\"https:\/\/www.redfin.com\/news\/data-center\/\">Redfin Data Center<\/a>). Family help eases but doesn\u2019t eliminate hurdles: the 2024 NAR Profile shows roughly one in ten to one in seven buyers overall used gift\/loan assistance, versus roughly one in four to one in three among first\u2011time buyers; around four in ten FHA purchase borrowers used gift funds (<a href=\"https:\/\/www.nar.realtor\">NAR Profile highlights 2024<\/a>; <a href=\"https:\/\/www.hud.gov\">HUD FY2024 FHA Annual Report<\/a>). Financial readiness tends to improve with age; the typical first\u2011time buyer\u2019s median age is 35, with a median 8% down payment and first\u2011time share at 32% (<a href=\"https:\/\/www.nar.realtor\">NAR Profile<\/a>).<\/p>\n\n<h2 id=\"home-buyer-demographics\">Home Buyer Demographics<\/h2>\n<p>The typical first\u2011time buyer is 35 years old, and first\u2011timers comprised 32% of all buyers with a median 8% down payment\u2014indicators of strained affordability relative to historic norms (<a href=\"https:\/\/www.nar.realtor\">NAR Profile<\/a>). Millennials remain a leading cohort of recent purchasers but face tight budgets amid elevated rates and record prices (<a href=\"https:\/\/www.freddiemac.com\/pmms\">PMMS<\/a>; <a href=\"https:\/\/www.fhfa.gov\/data\/hpi\">FHFA HPI<\/a>). Survey evidence shows many millennials adapt rather than exit: delaying timelines, lowering budgets, or targeting more affordable locations (<a href=\"https:\/\/www.zillow.com\/research\/consumer-housing-trends-report\/\">Zillow CHR 2024<\/a>; <a href=\"https:\/\/www.fanniemae.com\">HPSI<\/a>). Women maintain strong participation\u2014single women again outpaced single men\u2014yet report lower \u201cvery confident\u201d responses (often by mid\u2011single\u2011digit to low\u2011teens percentage points) across mortgage qualification, down\u2011payment readiness, and offer competitiveness (<a href=\"https:\/\/www.zillow.com\/research\/consumer-housing-trends-report\/\">Zillow CHR 2024<\/a>; <a href=\"https:\/\/www.nar.realtor\">NAR Profile highlights<\/a>).<\/p>\n\n<h2 id=\"study-methodology\">Study Methodology<\/h2>\n<ul>\n<li>Scope and timing: Sentiment and rate context reflect early November 2025 benchmarks (<a href=\"https:\/\/www.freddiemac.com\/pmms\">PMMS<\/a>; <a href=\"https:\/\/www.mba.org\">MBA<\/a>; <a href=\"https:\/\/www.optimalblue.com\/indices\/\">OBMMI<\/a>), while price levels and trends use the latest national indices available through late 2024 (<a href=\"https:\/\/www.fhfa.gov\/data\/hpi\">FHFA HPI<\/a>; <a href=\"https:\/\/www.spglobal.com\/spdji\/en\/indices\/indicators\/sp-corelogic-case-shiller-us-national-home-price-nsa-index\/\">Case\u2011Shiller<\/a>) and NAR monthly medians (<a href=\"https:\/\/www.nar.realtor\">Existing\u2011Home Sales<\/a>). Sentiment sources include <a href=\"https:\/\/www.fanniemae.com\">HPSI<\/a>, University of Michigan\u2019s buying conditions for houses, and The Conference Board\u2019s buying\u2011plans series.<\/li>\n<li>Measurement notes: PMMS is a weekly average of offered rates; MBA reports average contract rates on applications; OBMMI provides daily lock\u2011rate indices and often moves 10\u201320 bps around major data. Closed\u2011loan averages are captured by <a href=\"https:\/\/www.fhfa.gov\">FHFA MIRS<\/a>. Mortgage rates track the 10\u2011year Treasury plus an elevated spread since 2022 (<a href=\"https:\/\/www.federalreserve.gov\/releases\/h15\/\">Fed H.15<\/a>).<\/li>\n<li>Population and definitions: Statistics are U.S. consumer\u2011focused; demographic and buyer\u2011mix details come from NAR\u2019s Profile and related briefs (<a href=\"https:\/\/www.nar.realtor\">NAR Profile<\/a>; <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/research-reports\/home-buyer-and-seller-generational-trends\">NAR Generational Trends<\/a>). Price context uses FHFA\/Case\u2011Shiller; inventory context uses <a href=\"https:\/\/www.redfin.com\/news\/data-center\/\">Redfin Data Center<\/a>.<\/li>\n<li>Refresh cadence and citation best practices: Figures update weekly\/monthly; always date\u2011stamp rate citations (PMMS\/MBA weekly; OBMMI daily) and pair with points\/APR. Use FHFA\/Case\u2011Shiller for trend validation and NAR\/Census for price levels. Note that results vary month to month and seasonally, and intraweek rate volatility may not be fully captured by weekly averages.<\/li>\n<\/ul>\n\n<h2 id=\"key-challenges\">Key Challenges<\/h2>\n<p>Millennials and first\u2011time buyers face a convergence of headwinds: mid\u20116% to low\u20117% average 30\u2011year mortgage rates (<a href=\"https:\/\/www.freddiemac.com\/pmms\">PMMS<\/a>; <a href=\"https:\/\/www.optimalblue.com\/indices\/\">OBMMI<\/a>), record\u2011level home prices (<a href=\"https:\/\/www.fhfa.gov\/data\/hpi\">FHFA HPI<\/a>; <a href=\"https:\/\/www.spglobal.com\/spdji\/en\/indices\/indicators\/sp-corelogic-case-shiller-us-national-home-price-nsa-index\/\">Case\u2011Shiller<\/a>), and resumed student\u2011loan payments. Roughly 43 million borrowers hold nearly $1.6T in student debt; payments resumed in Oct 2023 and the on\u2011ramp ended in Sep 2024, with research showing higher delinquency on other debts among student\u2011loan borrowers, weighing on mortgage readiness (<a href=\"https:\/\/www.newyorkfed.org\">New York Fed Household Debt and Credit<\/a>; <a href=\"https:\/\/www.consumerfinance.gov\">CFPB Issue Spotlight<\/a>). Underwriting rules matter: conventional loans can use the documented income\u2011driven repayment (including $0 under SAVE), whereas FHA typically uses 0.5% of the balance if the reported payment is $0\u2014making product selection and documentation pivotal (<a href=\"https:\/\/selling-guide.fanniemae.com\/\">Fannie Mae Selling Guide<\/a>; <a href=\"https:\/\/www.ed.gov\/news\/press-releases\">U.S. Department of Education SAVE updates<\/a>). Cash\u2011to\u2011close remains a hurdle given closing costs, MIP\/guarantee fees on FHA\/USDA, and the prevalence of discount points; roughly one point often buys down ~0.25 percentage point in rate, and each 1.0 percentage\u2011point change in rate moves a $400,000 payment by about $260\u2013$270. MBA purchase\u2011application trends have been subdued, corroborating weak near\u2011term demand (<a href=\"https:\/\/www.mba.org\">MBA Weekly Applications Survey<\/a>).<\/p>\n<p><strong><em>[ Read: <a href=\"https:\/\/www.reviews.com\/insurance\/homeowners\/best\/\" target=\"_blank\" rel=\"noreferrer noopener\">The Best Homeowners Insurance Companies<\/a> ]<\/em><\/strong><\/p>\n<p>Multiple indicators point to persistently cautious home\u2011buying sentiment relative to pre\u2011pandemic norms: the HPSI \u201cgood time to buy\u201d share remains near record lows (<a href=\"https:\/\/www.fanniemae.com\">Fannie Mae<\/a>); average 30\u2011year rates are in the mid\u20116% to low\u20117% range as of early November 2025 (<a href=\"https:\/\/www.freddiemac.com\/pmms\">PMMS<\/a>); price indices are near record highs (<a href=\"https:\/\/www.fhfa.gov\/data\/hpi\">FHFA<\/a>; <a href=\"https:\/\/www.spglobal.com\/spdji\/en\/indices\/indicators\/sp-corelogic-case-shiller-us-national-home-price-nsa-index\/\">Case\u2011Shiller<\/a>); and inventory remains tight in many markets (<a href=\"https:\/\/www.redfin.com\/news\/data-center\/\">Redfin Data Center<\/a>).<\/p>\n<p>Photo by Superb Images \/ Gettyimages<\/p>","protected":false},"excerpt":{"rendered":"<p>To gauge current home-buying sentiment, we triangulate leading indicators and hard market data: Fannie Mae\u2019s Home Purchase Sentiment Index (HPSI), University of Michigan\u2019s Buying Conditions for Houses, The Conference Board\u2019s buying\u2011plans series, and NAR market metrics, paired with mortgage\u2011rate benchmarks (the weekly Freddie Mac PMMS, MBA Weekly Applications Survey, and daily OBMMI) plus home\u2011price indices [&hellip;]<\/p>\n","protected":false},"author":345,"featured_media":356536,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1268],"tags":[],"post_author":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Study: People Under 35 Are Less Confident Than Ever They&#039;ll Be Able To Buy A Home | Reviews.com<\/title>\n<meta name=\"description\" content=\"In order to get a sense of how comfortable people currently feel about buying a home, the Reviews.com Research Team conducted a study of 2,159 US adults.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.reviews.com\/insurance\/homeowners\/study-people-under-35-are-less-confident-theyll-be-able-to-buy-a-home\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" 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