Report: 63% Of Black Millennials Willing To Pay Higher Interest Rates To Become Homeowners

Thirty-one percent of Black millennials who plan to buy a home before late 2024 report high-interest rates as a barrier to homeownership, and 71% regret not purchasing a home when interest rates were lower.

Black millennials are willing to take extreme actions to make buying a home a reality.

New data from Real Estate Witch shows that some 63% of Black millennials would accept an interest rate of 10% or more, and that percentage would embrace a rate of 15% or more. But they are not alone, as 78% of millennials would take an interest rate higher than the national average of 6.6% on a reported 30-year mortgage.

The difference is enormous, as it could cost hundreds of dollars in monthly mortgage costs.

Also, 31% of Black millennials who plan to buy a home before late 2024 report high-interest rates as a barrier to homeownership, and 71% regret not purchasing a home when interest rates were lower.

Around 92% of Black millennials say the real estate market has impacted their home-buying plans, and 71% are concerned it will worsen for buyers before buying a home. Some 61% plan to refinance if rates decline, while 36% worry they won’t qualify for a mortgage.

With homes now being costly and harder to find due to reported lower inventory, millennials appear more inclined to take more significant risks to buy the homes they want.

So, want perhaps is driving their increased flexibility and eagerness?

“It could also be that many millennials are first-time home buyers, so they may have a lack of knowledge and not realize how important some things are,” says Jamie Seale, the author of the study. She noted that 60% of millennials would buy a home with a leaky roof. Yet, they may be unaware of how dangerous and expensive it could be to fix.

Millennials would even take on extra jobs to buy homes, create a GoFundMe to raise cash, and even delay their wedding. And nearly 85% would buy a house without touring it first, something inconceivable for many potential buyers.

The inspiring news is that Seale provided tips to help Black millennials become homeowners:

“Try not to finance a large new purchase before you buy a home. How much you owe will affect how much you can borrow.”
“Research first-time home buyer assistance programs designed to save you money and make buying a home easier.”
“Pay down or pay off other debts to improve your credit score. This will help you secure a mortgage and, possibly, a lower interest rate.”
“Get preapproved for a loan. During preapproval, a lender will verify your financial information and give you a letter showing how much you can borrow. It will show sellers you’re a serious buyer and give you a competitive edge in the market.”