Amid Economic Fluctuations, 70% Of First-Time Buyers Still See Homeownership As An Important Step To Building Wealth
To honor the beginning of National Homeownership Month, today, Chase Home Lending unveiled a refreshed suite of homebuyer resources and findings from a recent consumer survey. Chase’s new homebuyer product offerings, educational resources, and easy-to-use tools have been designed to help consumers navigate the homebuying process and manage homeownership.
Despite the fluctuating housing market this past year, Chase’s latest First-Time Homebuyer Study revealed that confidence levels remain high with 44% of respondents indicating they are confident they’ll be financially ready to purchase in the coming year, up 12% YoY.
Refreshed Suite of Chase Offerings and Educational Resources
Chase has expanded its portfolio of resources to support customers on their path to homeownership. New and updated resources include:
- Lock and Shop: Chase’s new Lock and Shop offering allows you to lock in your mortgage rate for 90-days with no upfront fee when using Chase Homebuyer Advantage. Locking in a rate helps customers move quickly and gives them peace of mind while shopping around for a home. Customers must find their property within 60 days, and will have the option of a one-time float down if rates improve. Once a customer finds their home, they’ll also have the added confidence of Chase’s Closing Guarantee, which guarantees an on-time closing in as little as 21 days, or the customer will receive $5,000.
- Beginner To Buyer Season II Now Available: Chase recently launched the second season of its award-winning homebuyer education podcast. Beginner To Buyer offers 10 new episodes featuring conversations with real buyers and expert guests discussing homebuying and ownership, home equity, common misconceptions, renovations, and investment properties. Buyers can dive deeper into these topics and more in Chase’s Homebuyer Education Center.
- Savings + Assistance Programs: Finding homebuyer grants and assistance programs is now quick and easy with Chase’s Homebuyer Assistance Finder. Users can search and discover grants and programs they may qualify for, like Chase’s $5,000 grant for eligible homebuyers purchasing in majority-Black and Hispanic neighborhoods throughout the U.S.
- $200 Pilot Program: Prospective buyers with an active loan offer from another lender can compare their offer to Chase’s with a home lending advisor. Chase will give eligible buyers $200 if they can’t match the offer or do better. The benefit is currently available for Chase customers in Houston, Ohio, and Arizona.
“The homebuying process can be complex, so it’s critical that homebuyers have the right knowledge, tools and experts to help them,” said Sean Grzebin, Head of Consumer Originations, Chase Home Lending. “The latest set of resources from Chase, coupled with our network of home lending advisors, were designed with the current needs of homebuyers in mind, like locking in a rate and finding opportunities for savings. We’re excited for consumers to explore our updated offerings and engage with tools that can help them achieve homeownership.”
New Research From Chase
The study was commissioned to better understand the needs of first-time homebuyers purchasing amid an uncertain economic environment. Homebuying attitudes, behaviors, and expectations were evaluated, specifically as it relates to confidence, financial readiness, and more. Though the current state of the economy has a considerable impact, 58% of respondents said that they were likely to purchase in the next 12 months, and 70% still see homeownership as an important step to building wealth.
“Prospective homebuyers are eager to tap into the wealth-building capabilities that homeownership brings,” shared Grzebin. “Despite market uncertainty and lengthened timelines, first-time buyers are making the necessary lifestyle adjustments to reach their homeownership goals.”
Respondents know what they need to do to get financially ready for homeownership, and confidence in their financial readiness is improving (up 12% YoY). Two-in-three respondents have improved their credit score and implemented budgeting techniques to save more for a home. Sixty-four percent are working to improve their credit score, 63% are creating and sticking to monthly budgets, and 67% are making lifestyle adjustments.
The study is based on the responses of 1,900 U.S.-based consumers fielded in Q4 2022 amongst those who have never owned a home. For more information about Chase Home Lending, visit www.chase.com/mortgage.
Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading financial services firm based in the United States with assets of $3.7 trillion and operations worldwide. Chase serves nearly 80 million consumers and 5.7 million small businesses, with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing. Customers can choose how and where they want to bank: More than 4,700 branches in 48 states and the District of Columbia, more than 15,000 ATMs, mobile, online and by phone. For more information, go to chase.com.
Additional survey findings:
- Black Americans represent 21% of first-time homebuyers in 2022.
- Thirteen percent of first-time homebuyers are Hispanic.
- Single women make up 22% of first-time homebuyers.
- First-time homebuyers are more likely to be married or partnered Millennials (56%), but nearly 40% are single. Twenty-five percent are Gen X, and even some (7%) Boomers are entering the homebuying process for the first time.
- One-in-four first-time homebuyers moved in with their parents/family as a money-saving strategy, up 12% YoY. Two-in-five future homeowners plan to move in with family, up from one-in-five last year. Even Gen X is more likely to resort to live with family than a year ago, with 19% having already moved in (up from 10% in 2021), and an additional 14% (up from 7% in 2021) expecting to do so.
- Sixty-three percent know the financial-related changes and activities they need to do to qualify for a loan.
- Fifty-nine percent know how much money they need to have to purchase a home, yet 46% are not sure they will ever be able to save enough.