How much do millennials prefer new homes over existing homes?
According to data from mortgage software firm Ellie Mae, 91% of closed loans for millennials in May were for new home purchases.
That’s up from 89% in April and 81% in January.
Conventional loans accounted for 69% of all closed loans for millennials while FHA loans accounted for 27%, according to the firm’s Millennial Tracker report.
The data correlates with the U.S. Census Bureau’s latest quarterly homeownership and vacancy report, which shows that homeownership among millennials age 35 and younger increased slightly to 36.5% of all homeowners in the second quarter, up from 35.3% in the first quarter.
Average millennial borrower FICO scores across all loan types rose slightly in June to an average of 723, up from 721.
For purchases, the average FICO score was 746 for a conventional loan, 681 for an FHA loan and 744 for a VA loan.
“As it remains a competitive, purchase-centric market, we will continue to keep a close eye on the purchase trends amongst millennials,” says Joe Tyrrell, Ellie Mae’s executive vice president of corporate strategy. “This new generation of homebuyers wants the capability of an on-demand mortgage, and we are working to provide borrowers a convenient and secure digital mortgage offering that makes the homebuying process a seamless experience.”
Regionally, the hottest housing markets for millennials in June 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%).