During July, millennial purchasing power grew as the average interest rate for all loans closed by this cohort fell to 3.25%, the lowest it's been since
Younger millennials, those born from 1991-1999, were the sub-group responsible for the most closed purchase home loans for the month. 81% of loans closed by younger millennials were for purchases, while 19% were for refinances. This was a stark contrast compared to loans closed by older millennials (30-40 years-old), many of whom already own homes. Fifty-three percent of their loans were for purchases and 46% were for refinances.
Younger millennials also took advantage of FHA loans in July. Ninety-seven percent of closed FHA loans for purchases were for younger millennials, the highest percentage since
Younger millennials also closed loans with a slightly lower FICO score average of 728 in July, compared to older millennials with an average FICO score of 747. Average FICO score for all closed loans across the generation was 739.
"We're seeing a new wave of younger millennial home buyers flood the market as we enter peak homebuying season," said Ellie Mae Chief Operating Officer,
"To encourage homeownership among the millennial generation, especially younger millennials, it is imperative lenders educate these borrowers on all loan types, including affordable options with less stringent credit requirements such as FHA loans," added Tyrrell.
Ellie Mae Millennial Tracker - Older Millennials vs. younger Millennials Older Millennials Younger Millennials Closed Loans (Share) - All Refinance 46% 19% Purchase 53% 81% Loan Type - All FHA 14% 25% Conventional 83% 71%
Ellie Mae® is the leading cloud-based platform provider for the mortgage finance industry.
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% of all closed mortgages dating back to 2014 that were initiated on
The Ellie Mae Millennial Tracker focuses on Millennial mortgage applications during specific time periods.
Ellie Mae is the leading cloud-based platform provider for the mortgage finance industry. Ellie Mae's technology solutions enable lenders to originate more loans, reduce origination costs, and shorten the time to close, all while ensuring the highest levels of compliance, quality and efficiency. Visit EllieMae.com or call 877.355.4362 to learn more.PRESS CONTACT
(925) 227-5913
Erica.Bigley@elliemae.com
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EllieMae@allisonpr.com
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