A large share of young buyers say they are delaying a home purchase because of a recent increase to federal interest rates, according to the credit bureau TransUnion.

Forty-two percent of survey respondents between the ages of 18 and 34 said they are putting off a home purchase due to the recent rate hike, which helps influence the mortgage rates offered by lenders. TransUnion said more millennials might decide to delay a purchase after a second rate increase announced in March.

Mortgage rates fell to historic lows as the Federal Reserve kept rates at zero during the recovery from the Great Recession. The Federal Reserve raised its interest rates for the first time since the economic downturn in December 2015, by 0.25 percent in December, and by another 0.25 percent in March. The benchmark rate remains below 1 percent, but two additional rate hikes are expected this year.

The recent rate hike was accompanied by a bump of approximately half a point in mortgage rates. According to Freddie Mac, the average rate for a 30-year fixed rate mortgage increased from 3.77 percent in November 2016 to 4.2 percent in March. However, this remains well below pre-recession norms, when mortgage rates often exceeded 6 percent.

The TransUnion survey revealed that most millennials were aware of the rate hike in December. A majority said the news affect their decision on whether to buy a home in some way.

However, the credit bureau found that these buyers were more often concerned with "superficial" issues. The largest share, 69 percent, was worried about how they would pay for home improvements if they purchased a property. Sixty-seven percent said they were concerned about maintaining the property after moving in.

TransUnion said younger buyers are more likely to be affected by poor credit. According to the credit bureau's database, 38 percent of millennials in the United States have a subprime credit score of 300 to 600 – above the national figure of 27 percent.

"Good credit is vital when shopping for a mortgage," said Heather Battison, vice president of TransUnion. "Lenders rely on credit to assess borrowers' riskiness and determine appropriate rates and terms for their loan. By keeping their credit strong and healthy, borrowers can position themselves for the best lowest possible rates and best possible terms."

Battison said buyers should plan to check their credit score at least three to six months before a purchase to see if it needs to be improved. Fifty-four percent of millennials who plan to buy a home in the next 11 months said they had taken this step within the past six months.

One way for renters to improve their credit score is to check with their landlord to see if their rent payments can be reported to the major credit bureaus. These reports can help establish a record of on-time payments, strengthening the renter's credit.

Battison said buyers should also have money set aside for any unexpected expenses, get pre-approved for a home loan to help establish their price range, and take steps to prevent fraud that could drive down their credit score.