More Younger Consumers Buying Homes

WASHINGTON – Record-low mortgage interest rates, exotic mortgages requiring little or no down payment, and consumers’ expectations of continuing home appreciation are fueling the pipeline of mortgages. Surprisingly among the growing number of homeowners are those in the younger than 25 age group. According to the U.S. Census Bureau, the rate of homeowners in this age group increased 69% from 1994 to 2004 – 14.9% to 25.2%, respectively. Other factors cited as reasons for the notable increase in homeownership in this age group is a decline in discrimination by lenders that has resulted in more opportunities for young, minority buyers, and homeowner training and counseling services through non-profit firms and public housing authorities.