B
aby Boomers have been fortunate when it comes to building wealth through homeownership. A recent report by Freddie Mac highlights the significant advantages they've had in accumulating home equity and securing their financial futures. As of 2024, there were 65 million Baby Boomers, accounting for 20% of the US population and 36% of total homeowner households.

    The "Silver Tsunami" that will follow as this generation ages is expected to leave a lasting impact on their children and heirs. Key findings from the report include:

    * Baby Boomers hold half of the nation's home equity, valued at $17.3 trillion.

    * A survey found that 75% of respondents plan to pass down their home or its proceeds to their children or family, while only 9% intend to use it for retirement funding.

    * Homeowners are more confident in their financial futures than renters, with nearly 70% expressing confidence in a "financially comfortable" retirement.

    The majority of survey respondents attribute their wealth-building success to fixed-rate mortgages. Half own their homes outright, and among those still paying off their mortgage, over half have an interest rate below 4%. Freddie Mac's Sonu Mittal notes that the stability and security provided by fixed-rate mortgages have been a key factor in Baby Boomers' financial success.

    However, some research suggests that younger generations may not be as fortunate. Rising property insurance and tax costs are eating into monthly housing expenses, making it more challenging for them to build wealth through homeownership. Industry innovations, including specialized mortgage products from Freddie Mac, aim to support Baby Boomers and their heirs during the aging process.