AUSTIN, Texas–High mortgage rates are affecting all home shoppers, with the exception of one generation, according to a new report.
Millennials have shown a higher interest in buying a home in 2025 compared to September 2024, based on a new survey from Realtor.com.
The survey, which also probed for how homeowners finance their home purchases, was conducted April 10-11, 2025 among a national sample of 2,203 adults 18 years old and older.
Nearly one-in-four Millennial respondents in a Realtor.com survey said they plan to purchase a home in the next six months, up from just 15% in September 2024. Only 14% of all respondents admit they plan to do the same.
According to Realtor.com, Millennials’ buying intentions rose 23% in 2025 compared to September 2024 (15%), although 69% of Americans are not planning to take part in a real estate transaction in the next six months.
Delays Taking Place
With mortgage rates now hovering near 7%, approximately one-third of respondents said that have had delayed buying a home because of high mortgage rates. The study found that younger generations, many who are first-time buyers, are substantially impacted by high interest rates.
The Realtor.com survey found approximately 55% of Gen Z respondents and 47% of Millennials said they are delaying a home purchase because of mortgage rates, compared to 35% of Gen X and 18% of Baby Boomers.
The Effects of Rates
Separately, Realtor.com reported its survey found respondents said their buying a home is contingent upon what the mortgage rate is, and that nearly a third of respondents said mortgage rates do not affect their decision to purchase a home.
Nevertheless, 2% of respondents admit they would be willing to buy a home with rates above 6%, where rates have been since September 2022. Sixty-three percent of homebuyers say they are looking for mortgage rates to drop below 5%, or even lower, to consider buying.
Source of Funds
When it comes to the source of funds for home purchases, Realtor.com found:
- 57% said personal savings
- 15% said investments or retirement funds
- 12% leveraged gifts or loans from family members
