70% of First-Time Homebuyers See Ownership as Wealth Building
The past few years have proven to be an interesting time for those looking to buy a home. Between a global pandemic and interest rates flipping from record lows to multi-year highs, some might have assumed that episode would only further grow the cohort of Americans who were content to rent indefinitely rather than buy. However, a new survey from Chase finds that a significant number of those who don’t own houses still intend to buy — and see doing so as a major financial milestone.
About Chase’s survey:
A new study from Chase surveyed 1,900 American consumers who have never owned a home about their thoughts and intentions about home buying. First, 44% of these respondents stated that they are confident in their ability to finally be ready to purchase a home in the coming year. That response is up 12% year over year. As part of this, two-thirds of those surveyed stated that they’ve employed budgeting techniques and improved their credit scores due to their intention to buy. Moreover, 25% of respondents report that they’ve moved in with their parents as a money-saving strategy.
On that note, the survey also found that a majority of consumers continue to view homeownership as a financial rite of passage. Furthermore, 70% say they view owning a home as an important step toward building wealth.
Outside of the survey:
Chase’s survey happens to coincide with the launch of a number of new features from Chase Home Lending. Among them is the Lock and Shop offer, which allows customers to lock in a mortgage rate for up to 90 days with no upfront fee. Under this program, customers will need to find a property within 60 days. Meanwhile, should rates actually improve during the period, customers have the option of a one-time “float down.”
Elsewhere, Chase is also piloting a new program meant to entice buyers into comparing rates with the bank. Those who have an active loan offer from another lender can check with Chase to see their rates. In the event that Chase can’t match or beat the other offer, eligible prospective buyers will be awarded $200. Currently, this pilot program is being offered to Chase customers in Houston, Ohio, and Arizona.
What they’re saying:
Commenting on the results of the survey, Chase Home Lending’s Head of Consumer Originations Sean Grzebin said, “Prospective homebuyers are eager to tap into the wealth-building capabilities that homeownership brings. Despite market uncertainty and lengthened timelines, first-time buyers are making the necessary lifestyle adjustments to reach their homeownership goals.”
Additionally, in regards to the bank’s new features for homebuyers, Grzenbin noted, “The homebuying process can be complex, so it’s critical that homebuyers have the right knowledge, tools and experts to help them. The latest set of resources from Chase, coupled with our network of home lending advisors, were designed with the current needs of homebuyers in mind, like locking in a rate and finding opportunities for savings.”
Lest you assume that all Millennials and Gen Zers are resigned to renting forever, Chase’s survey shows that isn’t the case across the board. Not only are a number of adults desiring to become homeowners but are also actively working toward that goal. With that said, it’s worth noting that Chase’s survey was conducted in the fourth quarter of last year. Therefore, it’s possible that some of the optimism expressed in the results could have faded some — especially as other surveys show Americans stating that now is not a good time to buy a home. Regardless of whether first-time homebuyers are able to buy within the coming months or have to wait for another couple of years, it’s great to see that banks are still working to serve this upcoming generation of buyers and meet them where they are in the process.