Market Overview

Percentage of Millennial Home Purchases Continued to Increase in June, According to Latest Ellie Mae Millennial Tracker

Share:

Mortgages to Millennial borrowers for new home purchases continued their
ascent in June, accounting for 91 percent of closed loans, according to
the latest Ellie
Mae Millennial Tracker
 report. In May, 90 percent of
closed mortgages to members of the generation were for new home
purchases, up from April's 89 percent, and January's annual low of 81
percent. This is in correlation with the Census
Bureau's
latest quarterly homeownership and vacancy report that
shows homeownership across Millennials age 35 and younger increased
slightly, representing 36.5 percent of all homeowners, compared to 35.3
percent in the first quarter of 2018.

Conventional loans remained attractive among Millennials, representing
69 percent of all loans closed in June, a slight uptick from 68 percent
in May. FHA loans represented 27 percent of all closed loans to this
generation, down one percentage point from the month prior. This is
significantly higher than the Ellie Mae June
Origination Insight Report
data which showed FHA loans represented
20 percent of closed loans in the month for borrowers of all ages.

Average Millennial borrower FICO scores across all loan types rose
slightly in June to an average of 723, up from 721 which held steady
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.

"As it remains a competitive, purchase-centric market, we will continue
to keep a close eye on the purchase trends amongst Millennials," said
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."

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 percent), Watertown, S.D. (65 percent),
Boone, Iowa (64 percent), and Dickinson, N.D. (61 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, lower 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.

View Comments and Join the Discussion!