Young homebuyers say they are ready for their next big purchase Many potential Young homebuyers say that they are gearing up towards purchasing a home of their own. Young Buyers and Millennials are reshaping the real estate market as they  are finding their dream homes on their own. The reason for the increase in young people wanting to purchase might own a home than to rent one. Why young buyers say they are ready for their next big buy Although most Millennials prefer renting, those that seek home ownership are looking at the bigger picture and are considering a home purchase for the following reasons. Qualifying for a mortgage is getting easier Long gone are the days when qualifying for a mortgage was a long, drawn out process. Although there remains a detailed set of procedures, many banks are qualifying young buyers as long as they have a 3 percent down payment for the property they are interested in. The inventory of starter homes is increasing Young buyers are not seeking large, expensive homes. Instead, they are looking for smaller homes that can fulfill their needs without having unnecessary space. Home builders have taken this into consideration and are creating smaller homes in less expensive communities that are more appealing to first-time and younger buyers. These starter homes are keenly priced, and they sell for approximately $120,000-$150,000, which is an excellent price range for a starter home. The mortgage rate will increase more slowly Mortgage rates can increase. However, studies have estimated that the increase will not be as quick as it has been in previous years. Instead, there will be a slower increase which works great for younger buyers. It is estimated that mortgage rates will increase each year by 5 or less. However, even an increase of 4-6 in the mortgage rate will only add an extra $60-$80 per month, which is still very reasonable if you take into consideration the average price of rent that a Millennial may be paying. Young buyers are considering the benefits of having their own space to call home. Most Millennials are considering not only purchasing one home but acquiring a second home or condo for rental purposes.