Jamie Seale shared with BLACK ENTERPRISE that more non-Black millennials will continue their home search while prices and interest rates are high.
The finding raises the question of whether those millennials erased their debt. It’s possible, but real estate expert Jamie Seale explained it’s more likely that as inflation pushed up home prices and interest rates, millennials with large amounts of debt dropped out of the home search and postponed their purchase.
To help attain homeownership, Black millennials are putting down less of a down payment.
A key reason: Debt is a major hurdle to saving for a down payment, and saving such is one of the top three barriers to buying a home for Black millennials. Some 42% report interest rates are too high and 38% cite both homes being too expensive and saving for a down payment as obstacles.
Here are some tips Seale offered for buying a home:
“Expand your search: To stay within budget, Black millennials may need to look at smaller properties or in rural areas or less [in-]demand neighborhoods.”
“Improve your credit score: In a high-cost environment, qualifying for the lowest possible interest rate will lower your monthly mortgage payment. To improve your credit score, pay down debts and avoid any late payments.”
Choose a shorter loan term: If you can afford a higher monthly payment, a 15-year loan usually has lower interest rates than a 30-year loan, meaning you’ll pay less in interest over time.
“Shop around: Talk with several different lenders to make sure you’re getting the best deal and the lowest rate. As interest rates rise, the number of home buyers who need a mortgage has dropped, so lenders will be eager for your business.”
“Alter your timing: Interest rates fluctuate, if you postpone your search, they may be lower in the future. However, that’s not without risks. Interest rates may continue to rise, as well as inflation. If inflation continues to increase, you’ll save more money by buying now than in the future, when money may hold less value.”
Source: Black Enterprise
