As millennials enter into a changing housing market, they're still struggling to obtain mortgages, according to CNBC staffer Diana Olick.

There are plenty of single-family rentals for millennials, but the majority of this generation has dreams of owning, which means paying a mortgage. But there are hurdles to overcome:

The additional cost, on top of higher credit score requirements, continue to sideline young buyers. While household formation is growing, only one-third of those new households are owner-occupants. The rest are renters, which is why the homeownership rate in the U.S. is falling again, now down to 63.5 percent, according to the U.S. Census, just one tick higher than its 50-year low.

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