CCG Insights

Millennials Step Up Their Home Purchasing

  • Insight

Millennials Step Up Their Home Purchasing

Millennials Step Up Their Home Purchasing

Millennials Step Up Their Home PurchasingMortgages to millennial borrowers for new home purchases continued to climb, accounting for 91% of closed loans from May 2018 to July 2018, according to the latest Ellie Mae Millennial Tracker report.

The Pleasanton, Calif.-based Ellie Mae found new home purchasers born 1980-1999, up from April’s 89%, and January’s annual low of 81%. The latest Millennial Tracker also revealed conventional loans accounted for 69% of all closed loans for millennials in June and FHA loans came in at 27%.

Ellie Mae indicated this parallels the Census Bureau’s latest quarterly homeownership and vacancy report that shows homeownership across millennials age 35 and younger improved a tad, representing 36.5% of all homeowners, compared to 35.3% in the first quarter of 2018.

Conventional loans remained desirable among millennials, accounting for 69% of all loans closed in the latest tracking, a slight gain from the 68% in the previous report. FHA loans represented 27% of all closed loans to this generation, down one percentage point from the month prior. Ellie Mae noted this is significantly higher than the Ellie Mae June Origination Insight Report data, which showed FHA loans represented 20% of closed loans in the month for borrowers of all ages. The Millennial Tracker is a subset of the Origination Insight Report.

The average millennial borrower’s FICO scores across all loan types grew slightly in the latest Millennial Tracker to an average of 723, up from 721, a rate that held steady from March through May. For purchases, the average FICO score was 746 for a conventional loan, 681 for an FHA loan and 744 for a VA loan.

Across all loan types, it took millennials an average of 42 days to close on their loans in June, a day longer than in March, April and May. Purchases took an average of 41 days and refinances took an average of 45 days.

In June, the hottest housing markets for millennials were primarily in the Midwest. The top markets by percentage of millennial loans closed included Clarksburg, W.Va. (65%), Watertown, S.D. (65%), Boone, Iowa (64%), and Dickinson, N.D. (61%).  The top metropolitan areas: Indiana, Pa. (64%), Bay City, Mich. (63%), Watertown, S.D. (62%), Big Spring, Texas (61%), Williston, N.D. (60%), Aberdeen, S.D. (60%) and Mitchell, S.D. (60%).

Ellie Mae said because it remains a competitive, purchase-centric market, they will continue to keep a close eye on the purchase trends amongst millennials.

This new generation of homebuyers wants the capability of an on-demand mortgage, and borrowers to provide a convenient and secure digital mortgage offering that makes the homebuying process a seamless experience.

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 sampling of approximately 80% of all closed mortgages dating back to 2014 initiated on Ellie Mae’s mortgage management solution. According to the firm, given the size of this sample and Ellie Mae’s market share, it is a strong proxy of millennial mortgage indicators across the country.

Get full access to this and other CCG Insights – Register Now

Already have an account? Log in

  • Tery Spataro Tery Spataro
  • August 8, 2018
  • customer behavior, homebuying, millennials, mortgage loans

You Might Like These, Too

Creating a Productive Culture
Tech Tuesday

Tech Tuesday: Creating a Productive Culture

Webinar

Webinar: Consumer Research and Insights for Executives

Tech Tuesday

Tech Tuesday: Women in Tech

Consolidation Continues Among Legacy Tech Vendors
Insight

Is the Fight Over Venmo Access a Bad Sign for Open Banking?

Leaders in Bank Consulting

About CCG Catalyst
Latest Insights
CCG

PHOENIX • NEW YORK • LONDON • SINGAPORE

Phone: +1-480-744-2240  • Contact Us

© 2021 CCG CATALYST CONSULTING GROUP. Privacy Policy & Terms of Service.
Request a Call Back
Linkedin
Twitter
Subscribe
for Insights
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

SAVE & ACCEPT
BANK
FINTECH
FUSION
  • About
  • Services
  • Insights
  • Fintech
  • Research
  • Contact
  • Press
  • Careers
  • Events
  • Terms
  • Privacy
Linkedin
Twitter