The dream of homeownership in 2026 comes with a stark reality — nearly 8 in 10 recent buyers blew past their original budgets, and a majority are losing sleep over the process.
That’s according to ServiceLink’s 2026 ServiceLink State of Homebuying Report, which surveyed 1,554 U.S. residents who purchased a home within the last two years, along with 507 loan officers.
High home prices (53%) and high interest rates (49%) ranked as the top two challenges respondents faced.
The national median single-family home price reached $414,900 in late 2025, while average 30-year fixed mortgage rates hovered at 6.90% in 2024 and 6.66% in 2025.
Seventy-seven percent of homebuyers reported exceeding their original budget. Among them, 10% went over by $80,000 or more — with millennials and Gen X leading that category, the report said.
Baby boomers proved most disciplined, with 53% saying they did not go over budget.
Loan officers are taking notice. Sixty-nine percent called borrowers taking on more mortgage than they can realistically afford their No. 1 concern.
Younger homeowners are feeling the squeeze most acutely. Half of Gen Z respondents and 44% of millennials said they have been at risk of missing at least one mortgage payment over the past two years.
The top three financial compromises buyers made: putting down more than they wanted (29%), taking on a higher interest rate than they wanted (29%) and taking on a larger mortgage than they wanted (28%).
Stress, speed and fraud fears
The most stressful part of the homebuying process? The home price offer and negotiation, cited by 19% of respondents. Understanding paperwork followed at 15% and the closing process at 12%.
“There was pressure to make the right decision quickly, and I was worried about having to overpay,” one millennial male told ServiceLink.
But beyond the usual stressors, fraud has emerged as a legitimate and growing concern.
The report reveals that 1 in 4 consumers are targeted by fraud during a real estate transaction and 1 in 20 become victims. Some respondents explicitly voiced fears about being scammed during their home purchase — a worry loan officers share.
Fifty-two percent of loan officer respondents cited mounting cybersecurity risks and growing cases of mortgage fraud as a professional concern.
Urgency defines modern buyer behavior. More than one in three respondents believe closing should take two weeks or less — a sharp contrast to the industry average of 30 to 40 days.
Forty-three percent of loan officers said their borrowers expect to close within two weeks.
Younger buyers are also getting inventive. Nearly half of Gen Z (47%) and 41% of millennials borrowed from or pooled money with friends and family for a down payment.
Twenty-seven percent of all respondents tapped their 401(k) for down payment funds — including 37% of millennials.
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