The online survey, conducted in April among 2,203 US adults aged 18 and older, found that Millennials are the only generation to report a growing intent to buy a home within the next six months.
The proportion of Millennials planning to purchase rose to 23%, up from 15% in September 2024.
In contrast, 69% of all respondents indicated they have no plans to engage in a real estate transaction in the next six months.
Laura Eddy, vice president of research and insights at Realtor.com, noted the significance of the trend.
“Despite current market challenges and persistently high mortgage rates, Millennials are showing a notable increase in homebuying interest this spring compared to last fall,” she said.
However, she emphasised that lower rates remain a key priority for most buyers.
“The lock-in effect is still very much in play,” she added.
High mortgage rates still a barrier for most
The research revealed that mortgage rates continue to weigh heavily on the market.
One in three respondents said they have delayed buying a home due to elevated rates, consistent with findings from late 2024.
Younger generations are feeling the brunt: over 50% of Millennials and Gen Z reported putting off plans to purchase a home due to rate concerns.
Gen Z, in particular, showed increased caution, with more turning to leases and delaying buying decisions compared to last year.
More broadly, over two-thirds of respondents acknowledged that mortgage rates affect their purchasing decisions.
Baby Boomers were the least affected, with 41% saying rates do not influence their choices.
Just 2% of all respondents said they would consider buying if mortgage rates were above 6%.
Most (63%) said they are looking for rates below 5% before making a purchase.
The survey also examined how Americans are financing home purchases.
A majority (57%) across all generations have relied on personal savings.
Others reported using personal investments or retirement accounts (15%) or receiving financial help from family (12%).
Among those planning to buy, one in four expect to tap into retirement savings or investment accounts.
Hannah Jones, senior research analyst at Realtor.com®, said these findings point to a broader sense of financial immobility.
“Many buyers feel stuck due to their current mortgage rate,” she explained.
“High rates, combined with limited affordable inventory, make it difficult—especially for first-time buyers without existing equity. That said, we expect the lock-in effect to ease as more people grow tired of waiting and are prompted by life changes such as job relocations, growing families, or retirement.”
Seller sentiment also shaped by rate expectations
A related Realtor.com survey on seller attitudes uncovered similar rate sensitivities.
Around half of homeowners considering selling said they feel ‘locked in’ by their current mortgage.
This sentiment is more pronounced among those who have been contemplating a sale for over a year.
Seller expectations about future interest rate trends appear to influence their intentions.
Among those who believe rates will rise in the next year, 43% said this would make them more likely to sell, while 20% said it would reduce their likelihood of listing.
Conversely, 69% of those who expect rates to fall said this would increase their willingness to sell, highlighting how rate shifts continue to drive market psychology on both sides of the transaction.
