CNBC’s Diana Olick reports that credit is the No. 1 barrier to entry for young, would-be home buyers. Not only is it harder for millennials to get credit, it is also more expensive.
- 33% of home loans made to millennials are FHA loans that requires only 3.5% down
- FHA loans require mortgage insurance, which raises the cost of the loan
In addition to the availability of credit and the cost of credit, the other factor hurting millennials is that even though mortgage interest rates are still near historic lows, home prices are rising far faster than incomes, negating much of the savings from these low rates. Read the full story here: Millennials are moving, but mortgages don’t follow