Desperate times call for desperate measures.
Faced with high mortgage rates and high home prices, some homebuyers – particularly younger and first-time home buyers – might be overextending in order to get their piece of the American dream, as per a report from Truework.
The report shows that nearly two-thirds of Gen Z and millennial buyers are counting on future rate drops for financial health.
It further reveals that there is a generational divide in home buying confidence and financial stress.
The survey of 1,000 recent U.S. homebuyers reveals a concerning trend: younger buyers are making risky financial bets on their ability to refinance in the future, with nearly two-thirds of Gen Z (64%) and millennial buyers (65%) saying it’s important to their financial health to be able to refinance their mortgage – double the rate of Baby Boomer recent buyers at just 32%.
And, according to the Truework 2025 Recent Homebuyer Report, which surveyed Americans who purchased homes in the past 18-24 months, it’s not just the younger crowd that is banking on a future drop in interest rates.
In fact, more than half (56%) of all recent buyers say that refinancing to a lower rate is important or extremely important to their financial health, and 1 in 4 (25%) say the ability to refinance is “extremely important” to their economic well-being.
“These findings reveal a generation of homebuyers who are taking significant financial risks in today’s market,” says Ethan Winchell, co-founder and president of Truework, a provider of employment and income verification solutions for the mortgage industry. “While homeownership remains a priority, younger buyers are betting their financial future on the hope that interest rates will drop significantly enough to make refinancing viable. “
“Today’s homebuyers are increasingly desperate for a return to lower interest rates, with many who
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