What are the major hurdles to home ownership for Generation Y? According to a national survey of 2,000 millenials, top concerns were:

1. 64% said that they have trouble saving enough for a down payment
2. 32% said their credit was not good enough
3. 32% said they were too wrapped up in student loan debt
4. 25% said they didn’t even know where to start
5. 14% said they were burdened with too much credit card debt

But there’s some good news…

55% percent of those surveyed said they plan to purhase a home in two years and 40% said that recent reductions in mortgage insurance premuims have favorably influenced them to make a home purchase. Source: Carrington Mortgage Service, LLC and OnePoll

Spring and Summer mean warmer weather and increase home sales according to California Association of Realtors Data. However, a new Experian survey suggests many homebuyers dread the process because they’re unaware of their credit scores. Here’s some important statistics:

• 70% of prospective buyers who know their credit scores feel significantly more prepared to buy a home, yet 54% of people do not know their scores at all.
• 62% of potential buyers are confidnent about their credit status.
• 60% of future buyers say they are financialy prepared to buy a home.
• 58% of future homebuyers are working to improve their credit in order to qualify for a better home loan interest rate.

Source: Experian Home Buying and Credit: Survey, Report 2015

A sharp increase in spring housing demand elevated home prices to levels last seen in late 2007 and reduced California’s housing affordability considerably in the second quarter, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). Making sense of the story

• The second-quarter 2015 drop in housing affordability follows two straight quarters of improvements for the state.
• The percentage of home buyers who could afford to purchase a median-priced, existing singlefamily home in California in second-quarter 2015 fell to 30 percent from the 34 percent recorded in the first quarter of 2015 and flat from the 30 percent in the second quarter a year ago, according to C.A.R.’s Traditional Housing Affordability Index (HAI).
• California’s housing affordability index hit a peak of 56 percent in the second quarter of 2012.
• Home buyers needed to earn a minimum annual income of $95,980 to qualify for the purchase of a $485,100 statewide median-priced, existing single-family home in the second quarter of 2015.
• The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $2,400, assuming a 20 percent down payment and an effective composite interest rate of 3.95 percent.
• The median home price was $441,610 in first-quarter 2015, and an annual income of $87,540 was needed to purchase a home at that price. The effective composite interest rate in second-quarter 2015 was 3.97 percent.
• Condominiums and townhomes were more affordable than single-family homes, with 39 percent of home buyers able to purchase the $388,250 median-priced condo or townhome. An annual income of $76,820 was required to make a monthly payment of $1,920.