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Gen Z makes up 1 in 5 purchase mortgage rate locks in Q2 2026
ICE data shows Gen Z purchase-lock borrowers averaged a 722 credit score and used non-savings sources for 29% of down payments in 2026.
Gen Z is taking a growing share of US homebuying mortgage activity, with ICE housing market data pointing to a shift in borrower needs for lenders and servicers. HousingWire reports that 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 data highlight lower credit scores among younger borrowers, with the average Gen Z borrower locking in a purchase loan in Q2 2026 scoring 722, below the average for Millennials at 734 and Gen X at 736. HousingWire notes this can widen the dispersion of rate offerings, increasing the importance of educating borrowers on how loan options affect monthly payments and long-term costs.
Down payment patterns also differ, HousingWire reports, with Gen Z borrowers putting less than 10% down on average, about 6 percentage points below the market average. One in five Gen Z buyers relied on a family gift (13%) or a loan (8%) to fund their down payment, and non-savings sources accounted for 29% of all purchase down payments in 2026, the highest share in seven years.
For lenders, HousingWire says the combination of lower credit scores and non-savings down payments points to a need for more proactive guidance, including clear explanations of rate scenarios and affordability tools. The outlet also cites ICE’s Encompass loan origination system and its mobile homebuyer app, designed to support first-time buyers from application to closing.