BAM Key Details:
- ICE’s July 2026 Mortgage Monitor report found that Gen Z accounted for a record 20% of purchase rate locks in Q2 2026, up from 16% a year ago.
- Gen Z now makes up more than a third of first-time homebuyer loans and 27% of FHA purchase lending.
- Gen Z and Millennials together now account for nearly two-thirds of all purchase mortgage lending.
Gen Z just hit 20% of all purchase rate locks in Q2 2026, the largest share on record.
The Intercontinental Exchange, Inc. (different ICE) just released its July 2026 Mortgage Monitor report, which also showed buyers across all generations tapping non-traditional sources of down payment funds to make home purchases happen.
The result is what Andy Walden, Head of Mortgage and Housing Market Research at ICE, is calling a “generational handoff”:
“Gen Z’s rise to nearly 20% of rate locks is one of the clearest signs yet of a generational handoff in the homebuying market. Despite facing one of the tougher affordability environments in decades, younger buyers are finding ways to become homeowners.”
Here’s what you need to know about who these buyers are and how they’re financing home purchases.
Who Gen Z Buyers Are Right Now
Here’s the breakdown of who these Gen Z buyers are and how they’re showing up in the lending data.
- Gen Z made up 20% of Q2 2026 purchase rate locks, up from 16% a year ago
- Gen Z accounts for more than a third of first-time homebuyer loans
- 27% of Gen Z purchase lending is FHA, compared with 19% VA and 17% conventional
The average Gen Z credit score is 722, the lowest of any generation, compared to:
- Millennials (734)
- Gen X (736)
- Boomers (754)
- Silent Generation (763)
These are details agents need to be aware of for their conversations with Gen Z buyers. Know their lending options and which ones fit their situation best. Know how their credit rating could impact their mortgage applications. Know which lenders to talk to for rate shopping.
It shouldn’t have to be said, but loyalty to your client comes before loyalty to any mortgage lender. And when every percentage point counts, shopping around is a must.
How Gen Z Is Funding Down Payments
Understanding where the money is coming from is a meaningful part of understanding who these buyers are:
- 71% of all 2026 buyers used personal savings.
- 29% relied on non-savings sources, the highest share in seven years.
- 1 in 5 Gen Z buyers used a family gift (13%) or a loan (8%) for their down payment
- Millennials leaned less on gifts and loans by comparison (10% gift, 6% loan)
If you’re working with younger buyers, odds are you’re talking about affordability challenges and their options for overcoming them.
Down payment assistance programs will probably come up. Be ready with information they can put to work right away, or that you can assist with. If they’re not aware of loans with lower down payment requirements, help them explore all the options available to them.
Do the math with your buyers to help them see how even the most affordable home purchase will impact their month-to-month budgeting and lifestyle well beyond the closing table.
What This Means for Your Real Estate Business
While Gen Z and Millennials account for the majority of all purchase mortgage applications, Baby Boomers still have an edge with equity-driven purchases:
- Gen Z and Millennials together now account for nearly two-thirds of all purchase lending
- Baby Boomers made up just 11% of purchase lending but drove 31% of cash-out refinance activity
Your conversations with local lenders, as well as with buyers in your market, should reflect this.
So should your real estate content. First-time borrowers will have different questions from buyers tapping their home equity to purchase their next home.
Speak to these buyers and be ready for them before the rest of the market catches up.
