Across all ages, 56% said refinancing to a lower mortgage rate is important or extremely important to their financial health, while 25% called it “extremely important.”
“These findings reveal a generation of homebuyers who are taking significant financial risks in today’s market,” said Ethan Winchell, co-founder and president of Truework. “While homeownership remains a priority, younger buyers are betting their financial future on the hope that interest rates will drop significantly enough to make refinancing viable.”
Truework co-founder and chief technology officer Victor Kabdebon emphasized how risky it is to base financial stability on the prospect of a future refinance.
“Most analysts predict (drastically lower mortgage rates won’t happen) anytime soon,” he said. “And those who are looking to buy today who we spoke with voiced frustration with how high rates have limited the homes they can afford to consider.”
The survey also showed a generational gap in stress and confidence.
One in three Gen Z and millennial buyers reported “significant stress” during the homebuying process, compared to 22% of boomers.
Among Gen Z buyers, 27% felt pessimistic about their financial future after buying a home.
Other findings included:
- 15% of millennials saying they were “not confident at all” in understanding their mortgage terms, compared with 11% of Gen Z buyers and 8% of Gen X and boomers.
- 19% of Gen Z buyers saying they felt financially insecure when purchasing, compared to 8% of boomers.
- 37% of Gen Z and 32% of millennial first-time buyers considering the process more difficult than expected, compared with 19% of Gen X and 7% of boomers.
Overall, 90% of respondents reported stress in the buying process — and 30% described it as “significant stress.”
West Coast buyers reported the highest stress levels, with the top stress sources across all demographics being paperwork and limited inventory.
Still, 86% of buyers said they felt financially secure when purchasing and 82% said they were optimistic about their financial future.
“It’s interesting that homebuyers in today’s market not only feel optimistic about their financial future, but also financially secure — even though this financial picture seems to be reliant on an anticipated drop in interest rates,” Winchell said.
“However, necessity and a realization that prices are not dropping seem to be continuing to push people into pursuing the American dream of homeownership at any cost.”
