As millennials are entering into a changing housing market, they are paying for the actions of lenders during the housing crisis and struggling to obtain mortgages. CNBC staffer Diana Olick reports on millennials moving into the housing market as urban centers reach "peak millennial."

There are plenty of single-family rentals for millennials but the majority of this generations have dreams of own which means paying a mortgage. Since 2014, Federal Housing Administration loans insured by the federal government have made up a third of the mortgages made to millennials but they include mortgage insurance premiums:

The additional cost, on top of higher credit score requirements, continue to sideline young buyers. While household formation is growing, only one-third of those new households are owner-occupants. The rest are renters, which is why the homeownership rate in the U.S. is falling again, now down to 63.5 percent, according to the U.S. Census, just one tick higher than its 50-year low.

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