According to the latest America Homebuyer Insights Report from Bank of America, homeownership is more important for Millennials than it was for their parents at the same age. This group has made progress in homebuying during the past few years, as home affordability was improved by historically low mortgage rates in 2020. However, with mortgage rates still quite high, younger homebuyers are being hurt at an unbalanced rate. In fact, home purchasing slowed more for Millennials than for older generations.

According to the data, it is specifically the older Millennial households (aged 35 – 45) that appear to be facing the greatest financial challenge. This report analyzed escrow payments coming out of consumer accounts which is a strong gauge for homebuying activity. A few indicators were noted based on this analysis.

First, prior to the pandemic, the percentage year-over-year growth rate of escrow payments among both younger and older Millennials was consistently higher than Baby Boomers. This seems appropriate as Millennials were entering their prime home-buying ages in 2019.