Key Details:
- A new Realtor.com report shows 23% of Millennials plan to buy a home in the next six months—up from 15% last fall—despite high mortgage rates delaying purchases for over half of Gen Z and Millennial buyers.
- Meanwhile, 63% of potential buyers are holding out for rates below 5%, and half of homeowners with a mortgage feel locked in.
If you caught Thursday’s Hot Sheet with Byron Lazine, you know that the latest Realtor.com® report just dropped, and it’s packed with insights on what’s motivating (or stalling) buyers and sellers in today’s market.
The biggest takeaway is that while most Americans are staying put, Millennials are showing more interest in buying a home than they were just six months ago.
Still, one number is holding them back—and it’s not home prices.
Read on for the highlights. And tune in for the Hot Sheet to get the full rundown:
1. Millennials Are Stepping Back In—but Cautiously
Across the board, most Americans say they’re not planning to buy or sell in the next six months. But Millennials are starting to think differently.
- 23% of Millennials now say they plan to buy a home in the next six months, up from 15% in September 2024.
- That’s in contrast to the broader population, where 69% say they’re not planning any real estate moves.
Why the shift? Part of it may be timing; this generation is squarely in their 30s and 40s, and life factors like kids, space, and job changes are starting to outweigh the fear of a bad rate.
Questions to Ask to Uncover Motivation
Part of your job is to ask the right questions to get clarity on a potential buyer’s motivation and reason for delaying a home purchase.
To that end, Byron suggested some questions to ask when you hear an objection like, “I don’t think this is the right time to buy,” or “I’m waiting for rates to go down”:
- What if you were able to bring the value down enough where the payment was more important than the rate?
- What if the rate didn’t come down? How long would you wait?
- What about the rate being at a certain number is important? Is it the monthly payment? Or is it just that you want a lower rate to be able to say you have a lower rate?
I would dig in—3, 4, 5, 6 questions deep—on that, to find out really what’s the concern? Because there’s a lot of information that’s probably missing.
2. Rates Are Still the Sticking Point
If you’re working with buyers (or trying to), you know this already: mortgage rates are the number one reason people are waiting.
- 1 in 3 Americans say they’ve delayed a home purchase due to current mortgage rates.
- For younger buyers, it’s worse: Over half of Gen Z and Millennial respondents said they’ve postponed buying because of rates.
- Only 2% would even consider buying if rates go above 6%.
- 63% are holding out for rates to dip below 5% before they’ll move forward.
Gen Z, in particular, is skittish. Many are choosing to re-sign leases instead of testing the waters of homeownership. Meanwhile, Boomers, many of whom bought years ago, are the least bothered by rate fluctuations; 41% say it has zero impact on their decision to buy.
Another point Byron made, using the Realtor.com chart below, is that nearly half of all Millennials in the survey agreed or strongly agreed they were holding off on buying a home because of high mortgage rates.
So, when rates do come down, those 47% of Millennials (not to mention buyers of other generations) will very likely be competing for available homes. And while inventory has gone up from record lows, we’re still far from having enough affordable homes to meet demand.
3. Locked-In Sellers Are Hesitating, Too
Meanwhile, nearly seven in 10 (69%) sellers who expect rates to drop say that possibility would push them to list.
Translation: A lot of homeowners are sitting on the fence. And their next move depends heavily on which way they think the market will tilt.
4. How Buyers Are Funding Their Purchase Plans
While mortgage rates are the big psychological hurdle, affordability is a practical one. And many buyers are turning to personal savings or tapping long-term assets to make it work.
- 57% of recent buyers used personal savings to finance their purchase.
- 15% dipped into retirement accounts or investment portfolios.
- 12% leaned on family for help—either through gifts or loans.
- Among prospective buyers, 25% plan to use retirement or investment funds to make the numbers work.
For first-time buyers, who don’t have equity from a previous home to offset costs, the financial equation is even tougher. That’s where strong lender relationships and creative financing strategies can make all the difference.
Final Word for Agents
This report is a reminder that interest is building, but many buyers and sellers are still waiting for a green light. And that light is often tied to the Fed.
Here are a few key takeaways:
- Don’t ignore Millennials. Their intent is rising, and they’ll be the first back in the pool when rates improve.
- Get ahead of seller psychology. If your leads are stuck on rate expectations, start talking about life changes, timing, and what they could lose by waiting too long.
- Build trust through education. Help your clients understand their options—not just where rates are today, but how to navigate them with the right strategy.
Want the full breakdown? Watch today’s Hot Sheet and read the full Realtor.com® report for more details, including charts and methodology.
