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

Intercontinental Exchange, Inc. , one of the world’s leading providers of financial market technology and data powering global capital markets, released its July 2026 ICE Mortgage Monitor report. The analysis found that Gen Z accounted for 1 in 5 purchase rate locks in Q2 2026 — 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.

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“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.”

Key findings from the July Mortgage Monitor include:

• Gen Z reaches a record 1 in 5 purchase rate locks in Q2 2026

Gen Z accounted for 20% of all purchase rate locks in the second quarter of 2026, the largest share to date, as the oldest members of the cohort approach 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. 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 the majority of purchase mortgage lending

Two-thirds of purchase volume now comes from digitally native Gen Z and Millennial homebuyers. Baby Boomers, meanwhile, accounted for 31% of cash-out refinance activity in Q2 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.

• Alternative down payment sources reach a seven-year high

While 71% of 2026 homebuyers relied on 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. See the full report for more details.

• Home prices re-accelerate to strongest annual growth in more than a year

The ICE Home Price Index re-accelerated to +1.3% annual growth in June — its highest reading in more than a year — with seasonally adjusted monthly gains of +0.29% holding stable despite higher mortgage rates. Seventy-two percent of markets are now above year-ago price levels, the largest share in over a year, and 91% posted seasonally adjusted gains in June. Inventory has continued to rise, however, signaling the potential for softer price gains ahead.

“For lenders and servicers, the generational shift in the borrower base is more than a demographic footnote, it’s a competitive inflection point,” said Bob Hart, President of ICE Mortgage Technology. “As Gen Z enters the market in force, organizations that have modernized their technology stack and customer engagement capabilities will be far better positioned to serve the next wave of homebuyers.”

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