CHERRY HILL, N.J., June 7, 2017 /PRNewswire/ -- Millennials all over the country are flocking to purchase new homes, especially single family homes, according to recent research from TD Bank, America's Most Convenient Bank®. In fact, more than eighty percent of current millennial homeowners in big cities - like Manhattan, Philadelphia and Boston - are looking to purchase single family homes in the next year or so.
Among the roughly 1,500 homeowners surveyed nationally for TD Bank's annual Mortgage Service Index, the overwhelming majority (90 percent) of millennial respondents said that now is good time to purchase a home and more than half (51 percent) plan to do so within the next year. Rising rates and the likelihood of additional rate increases motivated 40 percent of millennials to purchase a home recently and another quarter (26 percent) to begin the process of a home purchase.
"Although impending rate increases worry some potential homebuyers, they should keep in mind that rate hikes are a sign of renewed confidence in our economy and job market," said Ryan Bailey, EVP, Retail Lending Director, TD Bank. "Our survey data tells us that millennials are seizing this opportunity and leading the way with a favorable outlook on homebuying this season and beyond."
Following is an overview of additional results from the 2017 Mortgage Service Index:
Millennials are Steadfast yet Strategic Homebuyers
- Millennials aren't just buying any home on the market, with half (48 percent) purchasing newly constructed homes and 29 percent leveraging an upfront mortgage for construction
- Most millennials (85 percent) purchased their most recent home with a spouse or partner, but only approximately half (54 percent) did so after they were married
- Ninety-four percent of millennials believe that the housing market will improve or stay the same over the six months
Limited Inventory Remains a Roadblock
- The majority of homeowners (77 percent) had a positive experience with their bank or lender while obtaining a mortgage
- Yet buyers still encountered barriers, including low inventory (28 percent, up six percent from 2016) and knowledge and confidence in navigating the process (21 percent)
- In fact, forty-two percent of homeowners didn't feel that there were a lot of homes to choose from within their price range
"It's important for homebuyers to meet with their lenders early and often," said Bailey. "Talking to your mortgage loan officer before and during the mortgage process will instill the knowledge and confidence you need to navigate the entire mortgage process with ease. Surprises can be fun, but not when it comes to getting a mortgage for your home."
Human Guidance Promotes Optimism
- Almost three-quarters (73 percent) of homeowners said their most recent buying experience was very good or excellent
- Homeowners found information on mortgage products and services primarily from a realtor (46 percent), followed by an in-person lender visit (41 percent) and talking to friends, family and colleagues (33 percent)
- Eighty-eight percent of homeowners feel they had enough resources available to educate them on the mortgage process, yet over half of respondents (54 percent), and the majority of millennials (65 percent), think banks and lenders could provide more relevant, helpful information online
- Only 17% applied for a mortgage on the phone and 19% applied online, while the majority (64 percent) applied in person, signaling that face-to-face guidance is still #1 among homebuyers
Additional highlights from the TD Bank 2017 Mortgage Service Index are available at: https://mediaroom.tdbank.com/surveys
The study was conducted by research company Maru/Matchbox. Respondents were composed of a nationally representative sample of 1,543 American homeowners, with a margin of error of +/- 2.5 percent. Interviews were completed from April 24 through May 2, 2017. Data has been weighted by age, gender and region to reflect the population.
MARU/Matchbox is a professional services firm dedicated to improving its clients' business outcomes. It delivers its services through teams of sector-specific research consultants specializing in the use of Insight Community and Voice of Market technology.
About TD Bank, America's Most Convenient Bank®
TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the U.S., providing more than 9 million customers with a full range of retail, small business and commercial banking products and services at more than 1,200 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Bank and its subsidiaries offer customized private banking and wealth management services through TD Wealth®, and vehicle financing and dealer commercial services through TD Auto Finance. TD Bank is headquartered in Cherry Hill, N.J. To learn more, visit www.tdbank.com. Find TD Bank on Facebook at www.facebook.com/TDBank and on Twitter at www.twitter.com/TDBank_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services company in North America. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol "TD". To learn more, visit www.td.com.
SOURCE TD Bank