Over half of Americans erroneously believe that mortgage rates are at an all-time high and 1 in 6 aren’t sure if rates are at the highest, according to a survey fielded by The Harris Poll on behalf of KB Home.
For National Homeownership Month, KB Home—No. 6 on the 2024 Builder 100—wanted to better understand homeownership perceptions and home buying trends. What the survey found is that there are many gaps in potential home buyers' knowledge especially surrounding financing.
Only 56% of the 2,085 surveyed adults aged 18 and over identified the meaning of APR and 54% knew what PMI was. Those less likely to be familiar with the terms were Gen Zers and Millennials.
Additionally, only about 1 in 3 respondents knew key facts about financing a home including only 36% knowing that a minimum down payment of 20% is not required to purchase a home and 28% knowing that one can qualify for a mortgage with a credit score in the 500s.
In terms of perception, 51% associate home buying with being excited while 1 in 4 associate it with being stressed or nervous. Eighty-five percent are at least somewhat nervous about purchasing a “money pit” and around 3 in 4 are at least somewhat nervous about being able to afford a home, finding the right home, or finding the right partner to help them buy one.
Although 56% feel that they are in a worse position to buy a home than prior generations, about 58% are willing to spend less on nonessentials to save for a down payment and 45% would consider taking a gig job or side hustle to do so.
Regardless of interest rates, 83% still believe that homeownership is an essential life milestone and 40% think about buying a home at least once a week. The share of those who think about buying a home at least once a week is the highest among Gen Zers at 62% and millennials at 55%.
The top perks for owning are privacy at 49%, long-term financial benefits at 44%, and a place to make memories at 33%. Many associate home buying with feeling proud (43%), motivated (32%), and confident (30%).
To educate home buyers, KB Home is hosting over 25 home buying 101 events across the country covering a range of topics from the process itself to the advantages of new construction versus used homes.
“For nearly seven decades, KB Home has been focused on helping first-time homebuyers achieve their lifelong dream of buying a home by building affordably priced homes and partnering with buyers every step of the way,” says Rob McGibney, KB Home president and COO. “In honor of National Homeownership Month, we are building on this legacy by supporting the next generation of buyers with in-person and online resources and education.”
