According to the U.S. Census Bureau, homeownership jumped one-tenth of a percent between Q2 and Q3. The increase is attributed to Millennials who are leaving the rental market to become first-time home buyers.
Homeowners 34-and-under increased 1.2 percent year-over-year, while ages 35-44 dropped in home ownership by .5 percent.
Unlike past years where previous homebuyers drove the housing market, first-time homebuyers are gaining momentum and will continue to flood the market as millennials transition away from apartments. Tian Liu, chief economist at Genworth Mortgage Insurance says first-time homebuyers have purchased over 1.9 million homes in each of the past two years, creating increasing pressure on mortgage lenders.
As part of those increasing expectations, first-time homebuyers want their loan applications to be processed in real-time. Unfortunately, lenders rely on manual labor to review applications, verify the completeness of an application and submit files for underwriter approval.
Through AI-enhanced mortgage process automation, lenders can be better prepared for millennial home buyers and ensure their business is ready for the incoming market growth.
Benefits of adding AI to your mortgage organization
- Improve business processes through greater efficiency
- Reduce manual labor and related expenses
- Maintain changing regulatory compliance
- Attract customers and deliver a better mortgage experience
In the next year, more millennials will look to purchase a home as this age demographic starts settling down. Given that these are also first-time home buyers, lenders need to stay a step ahead of the curve by utilizing practical AI for their business.
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