When you think of Baby Boomers and Millennials, the primary thing that comes to mind is probably how different the two generations are. Different upbringings, different values... pretty much different everything. There is one thing, however, that is the same for these two generations: how mortgage rates impact their housing markets.
Baby Boomers are mostly looking to downsize, while Millennials are mostly looking to get out of the rental market and into an affordable starter home. Rising mortgage rates and a strong seller's market, coupled with the fact that these two groups are sometimes looking at the same properties, are sidelining a lot of potential buyers. What each group can afford is shrinking since both have limited funds. Baby Boomers are looking to make their mortgage payments minimal or non-existent, while Millennials are finally recovering from the Great Recession and have enough to switch from renter to owner. The good news is that recent months have seen a growth in the number of sellers, which means there are more available properties on the market, and the strength of the sellers market has eased so that it is a bit more balanced between buyer and seller. Even though rates are on the rise, it is a sign of a strong economy. The buyers that have been sidelined at the beginning of the year are having more options become available, so that everybody wins.
If you are looking to buy, Todd can help! Todd@ToddPriebe.com
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