Millennial Purchase Loans Increased Despite Rising Interest Rates According to February Ellie Mae Millennial Tracker™
Interest rates continued to rise in February to 4.399 percent, up from 4.248 percent the month prior and the highest recorded since June of 2014.
Millennials continued to favor conventional loans over FHA loans. Sixty-eight percent of the loans in February were conventional, the highest percentage since Ellie Mae began tracking these trends in 2016. FHA loans remained flat with the prior month at 28 percent, the lowest it has been since 2016.
Millennial homebuyers were also able to close their loans faster in February than the past two months. Purchase loans took an average of 41 days to close and refinance loans took an average of 43 days. It took substantially less time for FHA and VA refinance loans to close compared to recent months.
Time to close - refinance (days)
Additional key findings from the
The average loan amount for male Millennial borrowers was
$199,352in February, while the average loan amount for female borrowers was $189,084.
- At 724, the average FICO score for Millennial borrowers has generally held steady since last June. The average FICO score for female borrowers in February was 723. It was 725 for male borrowers.
The hottest housing markets for Millennials continued to be in the
Midwest. The top markets by percentage of Millennial loans closed
Casper, Wyo.(68 percent), Austin, Minn.(62 percent), and Fairmont, W.Va.(61 percent).
“According to the U.S. Census, Millennials are now officially the
largest group of homebuyers in the U.S.,” said
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