More Millennials Are Going Conventional!March 23, 2018
More millennials are qualifying for conventional loans, according to the Ellie Mae Millennial Tracker™. Approximately 67% of all mortgage loans taken out by millennials in January of this year were conventional, the highest percentage since 2016.
Men were slightly more likely to take out conventional loans than women. Around 68% of mortgage loans obtained by men in January were conventional, compared to 27%, FHA loans, and 2%, VA loans. On the other hand, 66% of loans taken out by women were conventional, compared to 32%, FHA, and 1%, VA.
Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae said in a press release: “Historically we have seen Millennials look to FHA programs to help address their home buying needs, but in the past two months, FHA loans have represented less than 30 percent of the total loans for Millennials. We view this as an indication that more Millennials are qualifying for conventional mortgages.”
More Millennials Refinancing
Looking at the total volume of millennial home loans for the month, it was also evident that more millennials are refinancing their existing mortgages. Refinance loans accounted for approximately 18% of loans by millennial borrowers in January, up by 3% just from December 2017, after being stable at 15% since last October. Interestingly enough, purchase loans dropped for the month by the exact same percentage – 3% – landing at 84%.
Millennials Have Good Credit Scores
The average FICO score for millennials was already good, but crept up slightly by 3 points to 723 in January. It was also slightly higher for women, 725, than for men, 724.
What Is the Ellie Mae Millennial Tracker?
The Ellie Mae Millennial Tracker is an interactive online tool which is free and available to everyone online. It provides up-to-date demographic data about the behavior of millennials related to mortgages. For more information on the tracker, visit http://elliemae.com/millennial-tracker.
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