SAN FRANCISCO — Younger U.S. homebuyers are basically betting that interest rates will drop enough to let them refinance, according to a new survey. And if recent rends are any indication, they may be betting correctly.
The Truework 2025 Recent Homebuyer Report, which polled 1,000 Americans who purchased homes in the past 18 to 24 months, found that nearly two-thirds of Gen Z (64%) and Millennial (65%) buyers say refinancing is important to their financial health — about double the rate of recent Baby Boomer buyers (32%).
More than half (56%) of all recent buyers rated refinancing as important or extremely important to their economic well-being, and one in four (25%) called it “extremely important.”
Significant Risks
“These findings reveal a generation of homebuyers who are taking significant financial risks in today’s market,” said Ethan Winchell, Truework’s co-founder and president. “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 CTO Victor Kabdebon warned that many buyers “are hanging their hopes on future refinancing to lower their monthly payments,” a gamble analysts say may not pay off soon.
The Findings
The survey also highlights a generational divide in homebuying stress and confidence, according to the company, which found:
One in three Gen Z and Millennial buyers reported “significant stress” during the buying process, compared to 22% of Boomers.
27% of Gen Z buyers felt pessimistic about their financial future after buying, versus a 16% overall average.
15% of Millennials said they were “not confident at all” in understanding their mortgage terms, higher than Gen Z (11%) and older generations (8%).
19% of Gen Z buyers felt financially insecure when purchasing, more than double the Boomer rate of 8%.
Over a third of Gen Z (37%) and nearly a third of Millennials (32%) found the process more difficult than expected, compared to 7% of Boomers.
Additional Findings
Across all ages, 90% of buyers reported stress during the purchase process, with 30% describing it as “significant.” West Coast buyers experienced the highest stress (37%), while the South had the lowest (27%), according to the TrueWork report.
The survey found the top stressors were tied between lengthy paperwork and limited inventory in desired neighborhoods. The biggest financial hurdle was budgeting for unexpected expenses and repairs, followed by collecting income, employment, and asset documentation.
Optimism Remains High
The survey found, however, that despite challenges, optimism remains high: 86% of recent buyers said they felt financially secure at the time of purchase, and 82% said they feel optimistic or very optimistic about their financial future after buying.
The top reasons for buying despite high interest rates and limited inventory were necessity for life or family (32%) and the belief that prices will not drop and may rise (21%), according to the report.
