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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 68 July 2025 J O U R N A L outdoor space (43%), avoiding rent increases and other fees (42%), and long-term financial improvement (41%), were among the top reasons for wanting to buy a home. • Nearly four out of five Americans stated that they would not be willing to give up any of the following if they had a set budget and had to choose between them: a modern floor plan (83%) a limited house warranty (87%), cheaper energy and water utility bills (86%), or the chance to customize their home (78%). • In order to purchase a property of their choice, the majority of buyers (74%) were prepared to give up certain aspects of their lifestyle, such as din- ing out less or staying at home with their parents for a longer period. Understanding When & How to Purchase is Just as Important as Affordability The majority (89%) expressed con- cerns about purchasing a property, and current renters (93%), this percentage was significantly greater. Approximately 25% of Americans say that their top three unfavorable feelings after making a purchase are anxiety (27%), followed by stress (24%). Americans were most concerned about their ability to finance a home (44%), taking on further debt (41%), and purchasing a money pit that requires repairs or upgrades (30%) when asked what caused them to feel uneasy about purchasing a property. Further, more than a quarter (28%) were unsure if this was the right moment to buy, and 23% were worried about having buyer's remorse and settling for a house they didn't love. Americans revealed their top rea- sons when it came to financial anxieties: • Getting the best mortgage rate (42%) • Being able to make monthly pay- ments (42%) • Understanding how much they can afford (43%) • Having enough money for a down payment (45%) Additionally, more than half (54%) of respondents thought that compared to potential homebuyers from previous gen- erations, they were in a poorer position to purchase a home now. Higher property costs (46%), high mortgage rates (38%), and unpredictable economic situations (36%), according to respondents, are the top three issues that modern homebuyers encounter that their parents' generation did not have to deal with. "At KB Home, helping our custom- ers achieve their lifelong dream of buy- ing a home—the largest purchase many people ever make—is a privilege that we take seriously," McGibney said. However, experts reveal how crucial the need for proper education is for buyers. Approximately 70% of adults either thought mortgage rates were at an all-time high or were unsure. In actuali- ty, the 30-year fixed rate peaked in 1981 at 18.6%, which is significantly higher than it is today, marking the peak of mortgage rates. Compared to the average rate of 7.7% over the last 50 years, the current average 30-year fixed mortgage rate of 6.8% is lower. Terms like APR (44%) and PMI (49%), for example, were unfamiliar to or unclear to over half of respondents. Less than two out of five people were aware of some important facts concern- ing house financing, such as the fact that a 20% down payment is not neces- sary (37% correct) and that a person may get a mortgage with a credit score in the 500s (25% correct). When it comes to the homebuying process, around 25% of Gen Zers and 23% of millennials reported feeling ap- prehensive about not knowing where to begin. Approximately one in five millen- nials (18%) and Gen Zers (20%) reported feeling nervous when they couldn't find a reliable source for homebuying help. When it comes to the homebuying process, around 25% of Gen Zers and 23% of millennials reported feeling apprehensive about not knowing where to begin.