ICE Mortgage Monitor: Gen Z Accounts for Record 1 in 5 Purchase Mortgage Locks

(House stock photo courtesy of Johnson via Unsplash)

Young buyers continue to gain market share despite affordability pressures, ICE reported Monday in its newest Mortgage Monitor report.

The analysis found that Gen Z accounted for one in five purchase rate locks in the second quarter — the largest share on record. Meanwhile, buyers across all generations are tapping non-traditional down payment sources to bridge affordability gaps as home price appreciation re-accelerated in June to its strongest annual pace in over a year.

“Gen Z’s rise to nearly 20% of rate locks is one of the clearest signs yet of a generational handoff in the homebuying market,” said Andy Walden, head of mortgage and housing market research at ICE. “Despite facing one of the tougher affordability environments in decades, younger buyers are finding ways to become homeowners.”

The report noted the oldest members of Gen Z are approaching 29. “The generation now represents nearly a third of all first-time homebuyer loans and 27% of FHA purchase lending, reflecting both its growing presence in the market and reliance on government-backed financing to navigate affordability challenges,” ICE said. “Because much of the generation is still entering its prime homebuying years, its market presence is poised to continue growing.”

Gen Z and Millennials now account for two-thirds of purchase mortgage lending, ICE found. Baby Boomers, meanwhile, accounted for 31% of cash-out refinance activity in the quarter and just 11% of purchase lending. “Their debt-to-income ratios on cash-out refinances also ran noticeably higher than those of other generations, suggesting a subset may be stretching their monthly budgets to tap equity accrued during the recent run-up in home prices,” the report added.

Alternative down payment sources reached a seven-year high during the quarter. While 71% of 2026 homebuyers relied on their personal savings for their down payment, alternative, non-savings sources now account for 29% of all purchase down payments — the highest share in seven years. Down payment sourcing also varies by generation. One in five Gen Z buyers relied on either a family gift (13%) or a loan (8%) to make a down payment, while Baby Boomers were twice as likely as any other generation to tap retirement savings.