Gen Z is buying homes. Is the mortgage industry ready?

Despite persistent affordability challenges, younger generations are finding ways to achieve homeownership, ICE housing market data shows. This demographic shift means the mortgage industry needs to rethink how it supports borrowers throughout the loan lifecycle to meet the financial realities and expectations of a new generation. Gen Z is entering the market in force Gen Z accounted for one in five purchase mortgage rate locks in the second quarter of 2026, according to ICE’s July 2026 Mortgage Monitor report. The oldest members of this generation are now 29, squarely in their prime homebuying years, and they are arriving in large numbers under financial conditions that demand more from lenders and servicers alike. Beyond their growing market share, a few characteristics of Gen Z borrowers stand out. Their credit scores tend to be lower because of their shorter credit histories. The average Gen Z borrower locking in a purchase loan in the second quarter had a credit score of 722, the lowest of any generation. By comparison, Millennial and Gen X borrowers averaged scores of 734 and 736, respectively. Lower credit scores can mean a wider dispersion of rate offerings, which makes it ...