Purchase Loans to Millennials Steadily Increased Even as Interest Rates Rose, According to Ellie Mae Millennial Tracker™
Interest rates also continued to rise in April to 4.73 percent, on
average, up from 4.63 percent the month prior. This is the highest
interest rate recorded since Ellie Mae began tracking Millennial loan
As interest rates crept up, average loan amounts to Millennials fell.
The average amount was
“Most Millennials are buying a house because there are major changes
happening in their lives such as starting a family, getting a new job,
or because they’ve decided that they want to build equity and stop
Overall, conventional loans represented 67 percent of all closed loans to Millennial borrowers, while FHA loans held steady at 29 percent from the previous month. VA purchase loans for Millennial borrowers represented 79 percent of all VA closed loans in April, steady from the month prior, and up from 66 percent in February.
The time it took for Millennial homebuyers to close a loan remained flat month-over-month. Purchase loans took an average of 39 days to close and refinance loans took an average of 44 days. FHA purchase loans took an average of 40 days to close, compared to 41 days in March. VA purchase loans averaged 49 days-to-close, compared to 45 days the month prior.
Additional key findings from the
Millennial males were listed as the primary borrower on 62 percent of
closed loans, while females were listed on 32 percent and six percent
were unspecified; this compared to
April 2017, where males were listed as the primary borrower on 65 percent of loans, females at 32 percent and three percent were unspecified.
- The average age of Millennial borrowers was 29.9, slightly down from 30.1 the month prior.
- At 721, the average FICO score for all Millennial borrowers held steady from the month prior and was down from 724 in February. The average FICO score for female borrowers in April was 723. It was 722 for male borrowers.
The hottest housing markets for Millennials continued to be in the
Midwest. The top markets by percentage of Millennial loans closed
Clarksburg. W.Va.(84 percent), Effingham, Ill.(82 percent), and Boone, Iowa(79 percent).
The Ellie Mae Millennial Tracker is an interactive online tool that provides access to up-to-date demographic data about this new generation of homebuyers. It mines data from a robust sampling of approximately 80 percent of all closed mortgages dating back to 2014 that were initiated on Ellie Mae’s Encompass® all-in-one mortgage management solution. Given the size of this sample and Ellie Mae’s market share, it is a strong proxy of Millennial mortgage indicators across the country. Searches can be tailored by borrower geography, age, gender, marital status, FICO score and amortization type.
For more information, visit http://elliemae.com/millennial-tracker.
ABOUT THE ELLIE MAE MILLENNIAL TRACKER
The Ellie Mae Millennial Tracker focuses on Millennial mortgage applications during specific time periods. Ellie Mae defines Millennials as applicants born between the years 1980 and 1999. New data is updated on the first Monday of every month for two months prior.
The Millennial Tracker is a subset of our Origination Insight Report,
which details aggregated, anonymized data pulled from Ellie Mae’s
Encompass origination platform. Additional information regarding the
Origination Insight Report can be found at http://elliemae.com/resources/origination-insight-reports.
News organizations have the right to reuse this data, provided that
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