Millennial Borrowers Closing More Purchase Loans as Share of Refinances Drops, Latest Ellie Mae Millennial Tracker Finds
For all loans closed by Millennials in
“Many Millennials are prioritizing homeownership and rather than being
deterred by a tight market, they’re increasingly competing for available
homes or moving to areas where inventory is more robust,” said
Added Tyrrell, “The average age for a Millennial homebuyer in December was 29.5 years old, the lowest for any month in 2018. This may be driven in part by younger borrowers who no longer feel the need to wait for a typical life event like marriage before buying a home. In fact, from 2016 to 2018, 63 percent of borrowers between the age of 20 and 29 were single when they closed their loans.”
Additional findings from the
Thirty-year rates on both Conventional (5.09 percent) and VA (4.86
percent) loans reached their highest mark since Ellie Mae began
tracking the data in 2016. Average FHA loan rates remained at their
highest point in December at 5.18 percent, matching the average figure
The average FICO score for Millennial borrowers on all closed loans
dropped to 721, down slightly from 722 in
On average, all home loans closed in 43 days, flat from the previous
year. Refinance loans closed in 46 days, up 1 day from 45 in
December 2017. Purchase loans closed in 41 days in December 2018, compared to 42 days the previous December.
- Millennial males (both single and married) were listed as the primary borrower on 60 percent of closed loans in December. Women were listed on 32 percent and the remainder of closed loans did not specify primary borrower gender.
For all closed loans in
December 2018, 52 percent of Millennial borrowers were married while 48 percent were single. These figures were flat from December 2017.
Ellie Mae® (NYSE: ELLI) 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 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
ABOUT ELLIE MAE
Ellie Mae, Inc.
Alexandra Gardell Kreuter