Gen Z Locks Record Share of Mortgage Rates in Q2

Generation Z accounted for a record 20% of home purchase rate locks in the second quarter of 2026, representing the largest share on record, according to Intercontinental Exchange's (ICE) July 2026 Mortgage Monitor. This surge indicates a growing presence of younger buyers in the housing market, even amidst persistent affordability challenges. The report, released on a Monday, also revealed that Gen Z now constitutes nearly one-third of all first-time homebuyer loans and 27% of Federal Housing Administration (FHA) purchase mortgages. As the oldest members of this generation approach age 29, ICE anticipates Gen Z's share of the home purchase market will continue to expand.

Andy Walden, ICE's head of mortgage and housing market research, stated in a company release that Gen Z's rise to nearly 20% of rate locks is a clear indicator of a generational transition in homebuying. He noted that despite facing one of the most challenging affordability environments in decades, younger buyers are actively finding pathways to homeownership. The report highlights broader generational trends, with Gen Z and millennials collectively making up almost two-thirds of the 2026 purchase lending market, underscoring the dominance of younger, tech-savvy generations in mortgage lending for purchases.

In contrast, baby boomers represented only 11% of purchase lending but were responsible for 31% of cash-out refinance activity. ICE observed that boomers also exhibited higher debt-to-income ratios on their cash-out refinances compared to other generations, suggesting some borrowers are stretching their financial limits to access home equity accumulated from recent home price increases. The prevailing affordability pressures are also compelling buyers to explore alternative funding sources for their down payments.

While 71% of all homebuyers utilized personal savings for their down payments, a significant 29% turned to other sources, including family gifts, loans, or retirement savings. This marks the highest proportion of alternative down payment funding in seven years. Specifically among Gen Z buyers, 13% received a family gift, and 8% used a loan to finance their down payment. Baby boomers were more inclined than any other generation to utilize...