Market Overview

Purchase Loans to Millennials Steadily Increased Even as Interest Rates Rose, According to Ellie Mae Millennial Tracker™

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Millennial homebuyers across the country exercised their purchase
power in April as competition for limited housing inventory continued.
Eighty-nine percent (89 percent) of mortgage loans made to Millennial
borrowers during the month were for new home purchases, up one
percentage point from the month prior, and the highest percentage since
May 2017, according to the latest Ellie
Mae Millennial Tracker™
.

Interest rates also continued to rise in April to 4.73 percent, on
average, up from 4.63 percent the month prior. This is the highest
interest rate recorded since Ellie Mae began tracking Millennial loan
data in January 2014.

As interest rates crept up, average loan amounts to Millennials fell.
The average amount was $194,300 in February, $192,055 in March and
$188,171 in April.

"Most Millennials are buying a house because there are major changes
happening in their lives such as starting a family, getting a new job,
or because they've decided that they want to build equity and stop
renting," said Joe Tyrrell, executive vice president of corporate
strategy for Ellie Mae. "We believe Millennial home purchases will
continue to climb this summer and while interest rates may slightly
impact the size of homes borrowers can get for their money, we don't
foresee it impacting their desire to buy."

Overall, conventional loans represented 67 percent of all closed loans
to Millennial borrowers, while FHA loans held steady at 29 percent from
the previous month. VA purchase loans for Millennial borrowers
represented 79 percent of all VA closed loans in April, steady from the
month prior, and up from 66 percent in February.

The time it took for Millennial homebuyers to close a loan remained flat
month-over-month. Purchase loans took an average of 39 days to close and
refinance loans took an average of 44 days. FHA purchase loans took an
average of 40 days to close, compared to 41 days in March. VA purchase
loans averaged 49 days-to-close, compared to 45 days the month prior.

Additional key findings from the April 2018 Ellie Mae Millennial Tracker
include:

  • Millennial males were listed as the primary borrower on 62 percent of
    closed loans, while females were listed on 32 percent and six percent
    were unspecified; this compared to April 2017, where males were listed
    as the primary borrower on 65 percent of loans, females at 32 percent
    and three percent were unspecified.
  • The average age of Millennial borrowers was 29.9, slightly down from
    30.1 the month prior.
  • At 721, the average FICO score for all Millennial borrowers held
    steady from the month prior and was down from 724 in February. The
    average FICO score for female borrowers in April was 723. It was 722
    for male borrowers.
  • The hottest housing markets for Millennials continued to be in the
    Midwest. The top markets by percentage of Millennial loans closed
    included Clarksburg. W.Va. (84 percent), Effingham, Ill. (82 percent),
    and Boone, Iowa (79 percent).

Ellie Mae® (NYSE:ELLI) is the leading cloud-based platform provider for
the mortgage finance industry.

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
Ellie Mae, Inc. is credited as the source.

ABOUT ELLIE MAE

Ellie Mae (NYSE:ELLI) is the leading cloud-based platform provider for
the mortgage finance industry. Ellie Mae's technology solutions enable
lenders to originate more loans, reduce origination costs, and reduce
the time to close, all while ensuring the highest levels of compliance,
quality and efficiency. Visit EllieMae.com
or call (877) 355-4362 to learn more.

© 2018 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, Mavent®,
Velocify®, the Ellie Mae logo and other trademarks or service marks of
Ellie Mae, Inc. appearing herein are the property of Ellie Mae, Inc. or
its subsidiaries. All rights reserved. Other company and product names
may be trademarks or copyrights of their respective owners.

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