Gen Z claims a record share of US purchase mortgage market
“Gen Z’s rise to nearly 20% of rate locks is one of the clearest signs yet of a generational handoff in the homebuying market,” said Andy Walden, head of mortgage and housing market research at Intercontinental Exchange (ICE) in Atlanta.
“Despite facing one of the tougher affordability environments in decades, younger buyers are finding ways to become homeowners.”
Taken together, Gen Z and Millennials now account for two-thirds of all purchase mortgage volume.
Baby Boomers, by contrast, held just 11% of purchase lending in Q2. They captured 31% of cash-out refinance activity and carried noticeably higher debt-to-income ratios on those refinances, suggesting a subset is stretching monthly budgets to tap equity built during recent price appreciation.
Alternative funding fills the affordability gap
Personal savings remained the primary down payment source for 71% of homebuyers in 2026, but alternative sources, including family gifts, personal loans, and retirement funds, now account for 29% of all purchase down payments, a seven-year high, per ICE.
