US Home Purchasing and Mortgages Market Report 2025
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US Home Purchasing and Mortgages Market Analysis
In 2025, the US Housing Market is shaped by mortgage rates consistently above 6%, driving affordability to historic lows despite steady wage growth and moderate inflation.Â
Since 2020, home prices have stayed elevated, with supply gradually improving but still constrained by hesitant sellers and limited affordable new construction. Homeownership rates remain above pre-pandemic levels, though racial disparities have widened. Consumer sentiment has weakened, prompting many buyers to delay purchases within a 5 year horizon. Looking ahead, innovative ownership models like rent-to-own are expected to grow, while digital mortgage platforms will become more dominant in the foreseeable future. Lenders will need to focus on flexible financing and targeted digital engagement to meet evolving buyer needs in the competitive US Home Purchasing and Mortgages Market.
US Home Purchasing and Mortgages Market Consumer Trends
Consumer trends in 2025 show a strong shift toward independent homebuying, with nearly 60% of buyers making decisions solo—especially young men in Gen Z and Millennials. Affordability remains a top concern, leading many first-time buyers to plan lower down payments, often under 10%. Younger generations prioritize single-family homes for space and investment potential, while racial and ethnic differences influence preferences for new versus pre-owned homes. Digital tools dominate the home search, but mortgage applications still rely heavily on traditional, face-to-face channels. Extended purchase timelines of 1-5 years reflect economic caution, yet many consumers actively save and prepare financially for future homeownership, signaling ongoing demand despite current market challenges.
Purchasing the US Home Purchasing and Mortgages Market Report 2025 offers key insights into consumer behavior and market trends in the US housing market. This analysis helps lenders, builders, and marketers optimize strategies by understanding buyer preferences, financing challenges, and digital engagement, enabling them to better meet the needs of homebuyers and the Home Purchasing and Mortgages Market.
About The Report
The US Home Purchasing and Mortgages Market Report 2025 report delivers comprehensive insights into consumer behavior, market dynamics, and financing trends shaping the US housing market. It covers key areas including home buying decision-making, first-time ownership, mortgage sources, purchase timing, down payment plans, and buyer motivations across different generations, income levels, and ethnic groups. The research draws on extensive consumer surveys and market data to highlight shifts in affordability, digital engagement, and emerging ownership models. This report is invaluable for lenders, real estate developers, marketers, and financial institutions seeking to understand evolving buyer preferences, tailor products, and capitalize on growth opportunities in a competitive Mortgages and Home Purchasing Market.
Key Topics Analyzed in the Report
- The home purchase process
- First-time homeownership
- Source of mortgage lender
- Home purchase timing
- Planned down payment amount
- Motives behind home purchase
- Behaviors and attitudes toward home purchasing
Meet the Expert Behind the Analysis
This report was written by Amr Hamdi. Amr joined Mintel in 2021 with a background in economics and previous work experience at the Federal Reserve. In his role, he leverages consumer research, competitive marketing analysis, and industry trends to provide detailed consumer reports around diverse topics such as banking, fintech, insurance, and investments.
Shifting consumer behaviors, with Gen Zers and Millennials increasingly prioritizing affordability and digital tools, are redefining the path to homeownership.
Amr Hamdi
Senior Analyst – Financial Services
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EXECUTIVE SUMMARY
- What you need to know
- More homebuyers are taking control of the purchase journey – reflecting an addressable market of solo prospects
- Graph 1: involvement in home purchase process, by year, 2023 and 2025
- With the home search process increasingly digitized, buyers are becoming less emotionally connected with the concept of homeownership
- Graph 2: behaviors and attitudes toward home purchasing, by year, 2021-25
- Flexible financing solutions can help new constructions find a larger audience
- Graph 3: types of homes considered, by year, 2021-25
- Market predictions
- Opportunities
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MARKET DYNAMICS
- Market context
- Market drivers
- Elevated rates and declining affordability shift underscore the need for more flexible borrowing solutions
- Graph 4: 30-year fixed mortgage rate and Home Ownership Affordability Index, 2020-25
- Declining sentiment underscores the need for more confidence building from lenders when engaging prospects
- Graph 5: consumer sentiment index, 2022-25
- Despite increasing home prices, alternative offerings can still make homeownership an attainable goal for first-time buyers
- Graph 6: median sales price of houses sold, 2020-24
- Market size
- Homeownership disparities have only widened with current affordability constraints
- Graph 7: homeownership rate, 2014-24
- While rising prices erode affordability, creative solutions make homeownership more attainable
- Graph 8: monthly supply of new houses in the US, 2014-24
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CONSUMER INSIGHTS
- Consumer fast facts
- Home purchase process and first-time ownership
- Starter homes can appeal to young, independent homebuyers still on their personal development journeys
- Graph 9: involvement in home purchase process, by time of home purchase, 2025
- Solo homebuying messaging will greatly appeal to young men
- Graph 10: involvement in home purchase process, by gender, 2025
- Home insurers have an abundance of acquisition opportunities with first-time owners
- Graph 11: first-time homeowners, by year, 2023 and 2025
- Highlighting the wealth-building benefits of homeownership can stimulate Boomers’ appetite for multiple properties
- Graph 12: first-time homeowners, by generation, 2025
- Parents and single homebuyers require more personalized messaging
- Graph 13: first-time homeowners, by gender and marital status, 2025
- Types of homes considered
- Flexible financing and customization solutions for new constructions can captivate young male homebuyers
- Graph 14: types of homes considered, by gender and generation, 2025
- Tailor messaging to cultural preferences
- Graph 15: types of homes considered, by race and ethnicity, 2025
- Position single-family homes as the ideal in-between
- Graph 16: potential homes consumers would consider, 2025
- Historical ownership gaps fuel multicultural consumers’ consideration of multi-family homes
- Graph 17: potential homes consumers would consider, by race and ethnicity, 2025
- Consideration for different home types across younger and older adults reflects differing buying priorities
- Graph 18: potential homes consumers would consider, by generation, 2025
- Source of mortgage lender
- Relationship-building is key to attracting prospective buyers
- Graph 19: source of mortgage lender, 2025
- Blend digital outreach with cross-sell messaging to capture the attention of Gen Z homebuyers
- Graph 20: source of mortgage lender, by generation, 2025
- Collaborations with agents and brokers can drive greater lending business in suburban areas
- Graph 21: source of mortgage lender, by area, 2025
- Home purchase timing
- Lenders must keep future buyers engaged via educational materials until they’re ready to take the big step
- Graph 22: home purchase timeline, by year, 2023 and 2025
- Younger adults remain an addressable audience for lenders and sellers in the immediate term
- Graph 23: home purchase timeline, by generation, 2025
- Wellness outreach can combat literacy gaps among lower-earners seeking homeownership
- Graph 24: home purchase timeline, by household income, 2025
- Planned down payment amount
- Future buyers are leaning towards low down payment amounts – a reflection of the currently challenging housing climate
- Graph 25: planned down payment amount, 2025
- Low down payment messaging will capture the attention of diverse income segments
- Graph 26: planned down payment amount, by household income, 2025
- Tailor down payment outreach to be relevant to consumers’ current lifestage
- Graph 27: planned down payment amount, by generation, 2025
- Time since moving into current home
- Favorable market conditions during COVID-19 drove an influx of new buyers in the past five years
- Graph 28: time since moving into current home, 2025
- Expanding families necessitate the need for finding more spacious, dedicated spaces
- Graph 29: time since moving into current home, by age of children in household, 2025
- Gen Zers and Millennials are at the forefront of recent moving trends
- Graph 30: time since moving into current home, by generation, 2025
- More flexible pathways to homeownership will help transition Millennials from renters to owners
- Graph 31: current housing situation, by generation, 2025
- Motives behind home purchase
- Seller-mover partnerships to streamline relocations can be a key differentiator
- Graph 32: motives behind home purchase, 2025
- Family-driven messaging will resonate with Millennial parents seeking dedicated spaces for their families to grow
- Graph 33: motives behind home purchase, by generation, 2025
- City and neighborhood marketing will capture the attention of Boomers
- Graph 34: motives behind home purchase, by generation, 2025
- Engage pet owners with targeted messaging
- Graph 35: pet ownership, by gender and parental status, 2024
- Graph 36: motives behind home purchase, by gender and parental status, 2025
- Behaviors and attitudes toward home purchasing
- FIs must leverage their physical presence to guide prospects through the high-stakes mortgage journey
- Graph 37: digital home purchase behaviors and attitudes, by generation, 2025
- Tailored messaging strategies can effectively appeal to differing rate attitudes across Younger and Older Millennials
- Graph 38: attitudes toward mortgage rates and home purchase, by generation, 2025
- Cost-conscious young buyers present an engagement opportunity through comparison tools
- Graph 39: importance of rate comparisons when choosing a lender, by generation, 2025
- Dissatisfaction among younger generations with their current living situation presents both opportunities and challenges
- Graph 40: attitudes toward current living situation and home purchase, by generation, 2025
- Diverse segments are actively prioritizing financial preparation for homeownership – strong engagement opportunity for FIs
- Graph 41: saving plans for future home purchase, by generation, race, and ethnicity, 2025
- Younger Millennials’ proclivity toward 15-year mortgages may reflect their desire for future financial mobility
- Graph 42: choosing a 15-year over 30-year mortgage, by generation, 2025
- 15-year mortgages may find a captive audience in the South
- Graph 43: choosing a 15-year over 30-year mortgage, by area, 2025
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INNOVATION AND MARKETING STRATEGIES
- Marketing and advertising
- Leverage the power of relationships to drive acquisition
- SoFi uses a wide range of incentives to get prospects off the fence
- Better Mortgage educates customers on current market conditions to drive informed decision-making
- Chase prioritizes education and digital-first solutions to engage with young, first-time homebuyers
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APPENDIX
- Consumer research questions
- Consumer research methodology
- Market size methodology
- Generations
- Abbreviations and terms
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