Some housing and real-estate experts have said over the past decade that Millennials, scarred by coming of age around the financial crisis, may turn away from home-buying.
Data from the U.S. Census Bureau just disclosed that the U.S. home ownership rate fell to 64.2% from 64.8%.
While the perspective on Millennial home buyers is still inconclusive, home-buying has certainly gotten easier in just the past few months in more ways than one, according to LendingTree's CEO Doug Lebda.
"We're seeing lenders pushing in...The reduction in interest rates has helped our lenders be more healthy -- they can lean into the refinance business. It will also save consumers money as well," Lebda said.
The Federal Reserve has put interest rate hikes on hold for 2019 as the economy decelerates. Millennials, as Lebda pointed out, have had some affordability issues with home-buying, and as bond yields have fallen, lenders can't command higher mortgage rates from home-buyers. "They'll also start to see a broadening of the number of lenders," Lebda added, which is always to the delight of buyers.
But here's where things get even easier.
Online Mortgage Buying Efficiency
"Lenders are moving budgets online," Lebda said.
More importantly, consumers are about to see a new feature on a product on LendingTree, which directly competes with the like of Quicken Loans' Rocket Mortgage product. "They'll also see, if they sign up for My LendingTree -- it's an app online -- we actually track your mortgage and tell you when you can refinance and actually save money," Lebda said.
Lebda also noted that many lenders, including banks, are offering credit products online and investing in technology in droves, as interest rates are far less attractive than they were historically and before the crisis. In order to boost loan volumes in the face of slimmer net interest margins, lenders are flocking to sites like LendingTree and Quicken Loans to sell to borrowers.