Experian: Most Millennials Not Ready for Homebuying

Aug 23, 2018

A new study released by Experian is warning that many Millennials need to improve their financial positions before becoming actively involved in homebuying.

According to Experian’s data, only 15 percent of Millennials currently have a mortgage, while 39 percent of Millennials without a mortgage have a prime or better score. The majority of this youthful demographic are facing higher delinquency rates in their consumer credit activities: Millennial delinquency rates as of the fourth quarter of 2017 was 2.08 percent for younger Millennials (ages 22-28) and 1.51 percent for older Millennials (29-35), compared to the national delinquency rate of 1.32 percent.

In terms of credit scoring, the average consumer VantageScore is 677, and Experian added credit scores generally become more prime (661-780) as people age. In comparison, younger Millennials have an average near prime score of 652 with older Millennials at the prime score of 665.

“This data presents good news for younger, thin file millennials interested in buying a home. We’re seeing that small changes in financial behaviors such as building a history of on time payments and improved credit practices can help lenders shift from viewing millennials as high-risk to low-risk relatively quickly,” said Michele Raneri, Vice President of Analytics and Business Development at Experian. “Knowing where you stand from a credit perspective is critical to improving or maintaining your financial well-being.”

About the author

Phil Hall

Link copied

Published

Aug 23, 2018

Home Equity

Achieve Closes $261.5M HELOC Securitization Ahead Of Planned TPO Launch

The company expects to begin purchasing fixed-rate HELOCs from correspondent lenders during the third quarter

Achieve has completed a $261.5 million securitization backed by 3,129 fixed-rate home equity lines of credit as it prepares to begin purchasing HELOCs from correspondent lenders.ACHM Trust 2026-HE1 closed July 30 and was announced Aug. 6. It is Achieve’s first HELOC securiti...

Analysis and Data

Better Will Miss September Break-Even Target, Interim CEO Says

Platform volume overtook DTC, but costly enterprise integrations have yet to deliver, and new partnership growth is not expected until Q4

Better Home & Finance will miss its goal of reaching adjusted EBITDA break-even by the end of September, interim CEO Daniel Lewis acknowledged during his first earnings call leading the company.Rather than set another deadline, Lewis said Better must first show that it c...

Aug

Las Vegas, NV

More from

Industry News

The Fed Held. The Mortgage Market Got A Warning.

Three policymakers favored an immediate hike, while Warsh welcomed higher bond yields and offered no clear path toward mortgage-rate relief

Industry News

Jul 30, 2026

New Study Finds UWM's 'All-In' Triggered Industrywide Pricing Spillovers

Research shows wholesale competitors responded to the 2021 Rocket ban by lowering mortgage rates,

Industry News

Jul 15, 2026

First Major Housing Reform In Decades Becomes Law Without Trump's Signature

Bipartisan ROAD to Housing Act advances supply, construction, and mortgage reforms despite White House protest

Industry News

Jul 10, 2026

Mortgage Star Conference Honors Women Shaping The Future Of Mortgage Leadership

MWLC honors leaders driving innovation, mentorship, and growth across the mortgage industry

Industry News

Jul 09, 2026

June Jobs Report Improves Mortgage Rate Outlook

Slower hiring strengthens bonds and eases concerns over additional Fed tightening

Industry News

Jul 02, 2026

NEXA Founder Mike Kortas Launches evoLend To Help Originators Retain Borrowers

New Fannie Mae-, Freddie Mac- and Ginnie Mae-approved mortgage servicer aims to keep originators connected to borrowers through servicing data, payoff visibility and retention tools

Industry News

Jul 02, 2026

Popular