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52 | TH E M R EP O RT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA A Nation of Overleveraging San Luis Obispo, California, comes in as the most overleveraged city in America. H omebuyers in San Luis Obispo, California, may be out of their league. According to the 2017 Home Overleverage Report, recently released by WalletHub, the West Coast town is the currently most overleveraged city in America. The Home Overleverage Report, which measured median mortgage balances against the median income and median home value of the city, found San Luis Obispo homeowners are the nation's most overleveraged, coming in with an "overleverage score" of 59.52. The city's homeowners have a median mortgage debt of $333,000, a median income of $16,565, and a median house value of $546,200. Their mortgage debt-to-income ratio is 2,014 percent and a mortgage debt-to-house value ratio of 61 percent. Following close behind on the list were Williamsburg, Virginia; Brooksville, Florida; Bay Point, California; Willis, Texas; McKees Rocks, Pennsylvania; Ellensburg, Washington; Dumfries, Virginia; and North Fort Myers, Florida. The impetus behind these overly ambitious cities? According to WalletHub's Richie Bernardo, it's the nation's low mortgage rates. "Mortgage rates are still hovering at historic lows," Bernardo wrote, "which could tempt the most impulsive consumers into purchasing a home much sooner than they can or should." But all hope isn't lost. According to Edward Nelling, Professor of Finance at Drexel University, refinancing is a good option. Homebuyers, he said, "should seek to refinance their mortgage, if lower rates are available. Depending on their lender, they may be able to negotiate alternative payments. In extreme cases, they should consider selling their house." Before going to the extremes, though, Norman Miller, Professor of Real Estate at University of San Diego, advises homebuyers to talk to their lenders. "Unless you have lost a job or have a medical problem, don't just walk away from a mortgage," Miller said. "If you did suffer a medical problem or job loss, talk to your lender. They may be able to work something out, especially if it is a portfolio (in-house) loan and not a GSE loan." Millennial Buyers Favor Local Lenders, Agents A recent survey shows millennials don't want things as hands-off as many think. M illennials don't want the homebuy- ing process to be as digital as some might think—at least not accord- ing to a recent survey by CentSai. In fact, the survey revealed that most would rather use local real estate agents and lenders over online-based ones. According to a recent CentSai survey of 2,050 millennials—adults aged 18 to 34—a whopping 75 percent of the sought-after demo would rather use a local real estate agent than an online one. Almost the same amount—71 percent—said they'd rather use a local lender, too. According to CentSai, "This is in stark contrast to recent data showing approximately 69 percent of all homebuyers would apply for a mortgage online." Doria Lavagnino, Co-founder and President of online financial wellness community CentSai, said the surprising results reflect the "peace of mind" many millenni - als need when buying their first home. "We were surprised to learn that online providers are not yet as big a disruptor in this sector as we first thought, despite purported cost savings," Lavagnino said. "We found that millennials place a high value on the personal touch and knowledge of a local agent. Buying a home for the first time is daunting, and working with a local agent—particularly an agent referred by a parent or friend— could provide peace of mind." Survey respondents cited a number of reasons for wanting the help of a local agent. Topping the list were the personal touch/ handholding it could provide, longstanding relationships they had, the agent's local knowledge, and the agent's ability to decrease the overall hassle of the buying process. Though online agents and lenders might not be as popular as once thought, the survey did reveal a millennial leaning toward one online process: Research. More than 90 percent of survey respondents said they would use an online site or mobile app to re - search neighborhoods, homes, and prices when buying a home. In addition to revealing mil- lennial attitudes toward online homebuying solutions, the CentSai survey also revealed that 56 percent of millennials plan to purchase a house in the next two years. Of the remaining 44 percent who said they will not be buying a home, 68 percent cited an inabil - ity to afford it as their reasoning. Another 12 percent said they liked the "freedom of renting," while 10 percent blamed student loan debt.