How to Stay Competitive With a New, Younger Generation of Homebuyers

Family looks down the path to homeownership. (Source: Shutterstock)

It’s no secret the mortgage industry has seen more than its fair share of ups and downs over the past two years. Now, as lenders navigate an increasingly uncertain market amid rising interest rates and a potential recession looming, they’re also tasked with preparing for a new wave of younger homebuyers and changing consumer demands. As millennials and Gen Z enter the market – accustomed to near-instant e-commerce transactions in an increasingly digital world, having grown up with smartphones, computers, tablets and constant access to technology right at their fingertips – they’re bringing with them a new set of expectations about the lending experience.

A recent report from National Mortgage News showed that while 64% of baby boomers say they are satisfied with the amount of time their home buying transactions took to close, that percentage falls to less than half among millennials and Gen Z at 48% and 36%, respectively. Meanwhile, across all generations, more than half of those surveyed applied for a mortgage online. As consumers continue to embrace a more digital lending experience, it’s becoming increasingly important that lenders do the same. Here’s how: