What does the market look like for Latino homebuyers?

Housing prices have skyrocketed the past few years, but the number of Latinos entering the market nationwide is on the rise.

In 2021, more than half of homes occupied by Latinos in the United States were owned by their residents.

North County's Giselle Zamora said there's nothing more fulfilling than seeing her family having a good time and making new memories, especially when it's in their own home. 

“I don't have any other words except for: so happy. super excited," Zamora said. "Definitely it's an accomplishment that we've always dreamed of, being able to give our kids a house that they can play in and more space."

Zamora said that she felt at one point like her family would never be able to buy in San Diego and even thought about moving to Arizona or Texas, where the cost of living is much less.

Currently, the average home price in San Diego County exceeds $900,000, according to the California Association of Realtors. 

Jessica Pena, who has been a real estate agent in San Diego for the past five years, told NBC 7 that she has seen rents and mortgage rates increase significantly during that relatively short period of time.

A new study conducted by the Urban Institute estimates that, nationwide, 70% of new homeowners in the U.S. between 2020-40 will be Latinos. 

“It was a little overwhelming because you don't know what to expect," Zamora said, describing her experience. "It's your first time, so you don't know that you look at a house and it might not work out, so you have to not get your hopes up. It was nerve-racking. It was a little frustrating at times.

First-time buyers should research a Realtor, Pena said, and find one to guide them through the process, and also connect with a lender, who will want to see financials. Also:

• Start saving early: Set a budget and calculate recurring expenses
• Review and improve your credit: a higher score will generally get you a lower interest rate 

“I think one of the mistakes that, as Hispanics, we might make is maybe just accumulating debt prior to buying a home," Pena said. "Accumulating debt is going to affect your credit score, and it's also going to affect the amount of your monthly mortgage payments that you're able to afford."

Other tips for first-time homeowners:

• Explore mortgage options: Conventional mortgages are 30 years, but there are 15-year loan options that will usually have a lower interest rate compared with a 30-year mortgage 
• Know your options for the down payment: Check to see if you qualify for a first-time buyer housing assistance programs

Persevering in their search allowed Zamora and her husband to stay in California, where they bought their first home in Escondido. 

“For now, we're very happy here, and we have more plans for the future to have our kids have their own rooms,” said Zamora. 

The Urban Institute's report also suggests that members of ethnic groups that buy a first home do so at a more advanced age, while Latino owners are between 20 and 40 years old when they do so, a younger age range compared with previous years.