Wow, Kelly. That's a question I don't hear often from millennials.
Your generation is twice as likely to be living at home with mom and dad than shopping for real estate. In fact you've been out of the home-buying game since the Crash of 2008.
Only 13.2% of people aged 18 to 34 are homeowners, a record low number. An astonishing 31% of people aged 18 to 34 are still living with their parents. And men are more likely than women to still be living at home.
For graduates with student loans, living at home or with relatives is a smart strategy and the single most effective budget tool you have. It's actually a no-brainer: Live at home, pay off your debt, build up savings. Why devote 50% or more of your pay to rent when you can live rent-free and use that money to cut your debt and save up for a home.
It might have been considered "slacker" and embarrassing for Generation X, but for millennials, it is acceptable and even wise.
Assuming your finances are in good shape -- you are gainfully employed, have six months of savings in the bank and money for a down payment -- then the smartest money move you can make is buying a home now. Interest rates are rock bottom, but will start rising either late this year or next.
Home prices are still well below their peaks of 2007 (except in cities like Dallas and Denver, where home prices are at record highs again). Meanwhile, forecasts call for rents to keep going up.
Typically, for first-time buyers, a 30-year fixed rate mortgage offers the lowest payments and the most stability. Six months before you are ready to buy, check your credit history for free at www.annualcreditreport.com to give yourself time to fix any mistakes. The higher your credit score, the lower the interest rate you'll pay.
--Christine Romans is CNN Chief Business Correspondent and author of Smart is the New Rich: Money Guide for Millennials. The book is currently available for pre-order at Amazon.com and in bookstores next week. Romans is giving away a copy to each person whose question is being answered this week.
Millennials: What's your most pressing money question? Are you worried about getting a job? Ask a question on Twitter or Facebook using #askchristine and @cnnmoney or here.
CNNMoney (New York) March 23, 2015: 7:43 AM ET
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