According to the latest Ellie Mae Millennial Tracker, the share of all purchase loans closed to millennials reached 61% in July, which was up five percentage points from June. This increase marks the highest purchase share for the generation since March.
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 to 40 yearsold), 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 Ellie Mae started tracking this data in 2016. In comparison, 92% of closed FHA loans by older millennials were for purchases.
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 home-buying season,” said Ellie Mae Chief Operating Officer Joe Tyrrell. “With interest rates at historic lows, now is the perfect time for younger millennials to purchase a home and start building equity.”
For more details from the Ellie Mae Millennial Tracker, click here.
Photo: Joe Tyrrell