(Newsroom America) -- Millennials all over the country are flocking to purchase new homes, especially single family homes, according to recent research from TD Bank.
In fact, more than eighty percent of current millennial homeowners in big cities - like Manhattan, Philadelphia and Boston - are looking to purchase single family homes in the next year or so.
Among the roughly 1,500 homeowners surveyed nationally for TD Bank's annual Mortgage Service Index, the overwhelming majority (90 percent) of millennial respondents said that now is good time to purchase a home and more than half (51 percent) plan to do so within the next year.
Rising rates and the likelihood of additional rate increases motivated 40 percent of millennials to purchase a home recently and another quarter (26 percent) to begin the process of a home purchase.
"Although impending rate increases worry some potential homebuyers, they should keep in mind that rate hikes are a sign of renewed confidence in our economy and job market," said Ryan Bailey, EVP, Retail Lending Director, TD Bank. "Our survey data tells us that millennials are seizing this opportunity and leading the way with a favorable outlook on homebuying this season and beyond."
Following is an overview of additional results from the 2017 Mortgage Service Index:
Millennials are Steadfast yet Strategic Homebuyers
Millennials aren't just buying any home on the market, with half (48 percent) purchasing newly constructed homes and 29 percent leveraging an upfront mortgage for construction
Most millennials (85 percent) purchased their most recent home with a spouse or partner, but only approximately half (54 percent) did so after they were married
Ninety-four percent of millennials believe that the housing market will improve or stay the same over the six months
Limited Inventory Remains a Roadblock
The majority of homeowners (77 percent) had a positive experience with their bank or lender while obtaining a mortgage
Yet buyers still encountered barriers, including low inventory (28 percent, up six percent from 2016) and knowledge and confidence in navigating the process (21 percent) In fact, forty-two percent of homeowners didn't feel that there were a lot of homes to choose from within their price range
"It's important for homebuyers to meet with their lenders early and often," said Bailey. "Talking to your mortgage loan officer before and during the mortgage process will instill the knowledge and confidence you need to navigate the entire mortgage process with ease. Surprises can be fun, but not when it comes to getting a mortgage for your home."
Human Guidance Promotes Optimism
Almost three-quarters (73 percent) of homeowners said their most recent buying experience was very good or excellent
Homeowners found information on mortgage products and services primarily from a realtor (46 percent), followed by an in-person lender visit (41 percent) and talking to friends, family and colleagues (33 percent)
Eighty-eight percent of homeowners feel they had enough resources available to educate them on the mortgage process, yet over half of respondents (54 percent), and the majority of millennials (65 percent), think banks and lenders could provide more relevant, helpful information online
Only 17% applied for a mortgage on the phone and 19% applied online, while the majority (64 percent) applied in person, signaling that face-to-face guidance is still #1 among homebuyers