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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 52 October 2023 F E A T U R E S T O R Y technology, millennials have turned to it to facilitate a smoother homebuying process. What may be surprising is that a greater percentage of millennial SOHBR respondents have leveraged mortgage technology than their younger, Gen Z counterparts, as 60% of millennials said they had applied for a mortgage online, 50% had eSigned documents, and 31% had closed remotely via a virtual platform. These figures compare with 45%, 36%, and 16% respectively for Gen Z homebuyers. The slight edge by millennials in terms of embracing technology over their Gen Z counterparts could, of course, be due to the fact that Gen Z is still coming of age, and not yet ready to enter the homebuying process (with the young- est of Gen Z still in middle school). We anticipate their influence on the home purchase process, and their participation in future SOHBR consumer surveys, will continue to grow in years to come. What technology benefits do millennials covet most highly? C onvenience and ease of use (63%), time savings (59%), flexibility to make progress on their own schedules (51%), transparency into the process (49%), and cost savings (40%). Millennials are embracing auctions as a means to make their homeownership and wealth- building dreams come true T he fierce competition for homes over the past few years has inspired homeowners to start exploring alterna- tive channels. This exploration has led many to the courthouse steps, as well as online auction platforms to find homes to live in themselves, rent, or fix and flip. More than one in three (39%) millen- nials said they would consider buying at auction, putting this group on par with all respondents (40%). That 40% rep- resents a 7% increase over homebuyers who said the same in last year's SOHBR. Primary motivations to buy at auction are the potential cost savings and a faster homebuying process. Notably, this year's SOHBR shows a dramatic swing in homebuyers' poten- tial usage of auction properties, as 50% now say they would use the home they purchase as their own primary residence, compared with just 29% a year ago. And where 31% said in 2022 they would fix and flip, only 20% have that intention in 2023. Looking to an auction property as an opportunity to generate rental income held steady in 2023 at 23%, exactly the same as in 2022. Millennials are growing increasingly savvy in the homebuying space A s the millennial generation contin- ues to mature, their accumulating knowledge in the homebuying space po- sitions them to exercise good judgment in assessing and acting upon opportuni- ties and challenges. For example: » When interest rates were low, millennials jumped on the opportu- nity to refinance. Forty-nine percent reported having refinanced over the past three years. » When conditions have not been as favorable, millennials have taken a wait-and-see approach in anticipation of better opportunities to come. Of those who considered but abandoned the idea of buying a home due to the high prices and/or mortgage rates of 2022, 58% were millennials. (Keep in mind these consumers want to buy; they just haven't closed the deal yet.) » As mentioned above, this buying group is eager to leverage their home equity, enthusiastically embracing technology, and opening their minds to alternative paths to homeownership. In total, the SOHBR findings strongly suggest that the millennial generation continues to wield strong influence and hold tremendous market potential. Given their age and stage of life, they promise to be a driving force in the mortgage industry for years to come. The slight edge by millennials in terms of embracing technology over their Gen Z counterparts could, of course, be due to the fact that Gen Z is still coming of age, and not yet ready to enter the homebuying process (with the youngest of Gen Z still in middle school).