At the risk of using a baby boomer song to reference younger generations’ purchase trends: Home sales, they are a-changin’.

Two-thirds of purchase mortgage volume now comes from Gen Z and millennial buyers, according to second-quarter data released Monday by Intercontinental Exchange Inc. (ICE) as part of its Mortgage Monitor report for July.

Gen Z — typically defined as individuals born between 1997 and 2012 — accounted for 20% of purchase rate locks during this period. It was the largest share on record for the demographic, according to ICE. Millennials generally refers to people born between 1981 and 1996.

“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,” Andy Walden, head of mortgage and housing market research at ICE, commented in a press release. “Despite facing one of the tougher affordability environments in decades, younger buyers are finding ways to become homeowners.”

The ICE research affirms a study released in May by LendingTree, which found nearly 20% of purchase requests between 2024 and 2025 were by Gen Z applicants.

According to the ICE analysis, the Gen Z generation now represents almost one-third of all first-time homebuyer loans and 27% of Federal Housing Administration purchase loans, “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,” the analysis stated.

Bob Hart, president of ICE Mortgage Technology, called the generational shift a “competitive inflection point” for lenders and servicers.

“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,” Hart noted.

Another trend observed by ICE is that alternative, non-savings downpayment sources have reached a seven-year high of 29% thus far in 2026.

“Buyers across all generations are tapping nontraditional downpayment sources to bridge affordability gaps as home price appreciation reaccelerated in June to its strongest annual pace in over a year,” the analysis stated.

About 20% of Gen Z homebuyers in 2026 were supported by a gift or loan from a family member, while baby boomers were “twice as likely as any other generation to tap retirement savings,” ICE reported.