Four in Five Recent Home Buyers May Look to Refinance in the Next 12 Months to Help Alleviate Strain on Personal Finances
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New TransUnion survey shows refinancing may offer relief for both home and auto owners as rates begin to fall
CHICAGO, Oct. 30, 2024 (GLOBE NEWSWIRE) -- A new TransUnion (NYSE: TRU) survey found that many consumers feel their existing auto and new mortgage payments are putting a strain on their household finances, and the prospect of falling interest rates has them ready to consider refinancing those loans.
The surveys of current auto loan customers and those consumers who have taken out a mortgage in the last 24 months were conducted between September 18 and September 27, 2024. They resulted in responses from 1,002 and 1,025 auto and mortgage loan customers, respectively.
“We surveyed this specific group of recent borrowers to better understand the drivers of refinance for both mortgages and auto loans,” said Jason Laky, executive vice president and head of financial services at TransUnion. “Millions of people financed homes and autos during this period of high interest rates, and many will look to refinance as interest rates decline.”
TransUnion’s survey found four in five recent home buyers say their mortgage payments are straining their finances and are looking to refinance their mortgage payments in the next 12 months.
Many Recent Home Buyers Say Their Current Mortgage Payment is a Strain on Their Personal Finances
| Opinions/Generation | All Consumers | Gen Z | Millennials | Gen X | Baby Boomers |
| Strongly Agree or Agree | 80.1% | 79.7% | 88.7% | 75.3% | 54.9% |
| Neither Agree nor Disagree | 8.0% | 10.6% | 4.6% | 9.8% | 12.1% |
| Disagree or Strongly Disagree | 11.9% | 9.7% | 6.7% | 14.9% | 33.0% |
Percent of Recent Home Buyers Who Anticipate Refinancing Their Mortgage in the Next Twelve Months if Rates Fall
| Opinions/Generation | All Consumers | Gen Z | Millennials | Gen X | Baby Boomers |
| Very Likely or | 80.0% | 77.0% | 89.6% | 78.5% | 46.2% |
| Neither Likely nor Unlikely | 7.1% | 10.2% | 4.2% | 7.3% | 13.2% |
| Unlikely or Very Unlikely | 12.9% | 12.8% | 6.2% | 14.2% | 40.6% |
Source: TransUnion U.S. consumer survey
When asked the biggest factor that would ultimately drive them to pull the trigger on a refinancing decision, 70% of these recent home buyers said that a more favorable loan term would be a key driver for them. However, a nearly identical percentage said that better interest rates (67%) and a cash-out refinance (61%) would also be significant drivers, reflecting broad economic interest.
“For many of these recent home buyers, their mortgage payment is their largest single payment each month,” said Satyan Merchant, senior vice president and mortgage and auto business leader for TransUnion. “The upside is that it is a payment that can be refinanced if the economic climate allows for it, and as interest rates begin to fall, this group of consumers should begin exploring this option. Conversely, lenders should be actively marketing to these refinance candidates, regardless of what their primary motivation to refinance may be.”
