Millennials Continue to Compete in Housing Market, According to April Ellie Mae Millennial Tracker
June 07 2017 - 4:15PM
Business Wire
Percentage of Closed Loans for Millennials in
Los Angeles, New York, Chicago and San Francisco Has Steadily
Increased Over Last Three Years
As the traditional home buying season kicked off, the seller
held the upper-hand as low housing inventory drove competition
among homebuyers, including Millennials. However, the competitive
market did not deter Millennials, even in some of the most
expensive markets, as the percentage of purchase loans among these
borrowers steadily increased to 89 percent in April, up from 88
percent in March, according to the latest Ellie Mae Millennial
Tracker™. Closed refinance loans fell to 10 percent of all loans,
down from 11 percent the month prior.
In April, the top metropolitan statistical areas (MSAs) where
Millennials accounted for the majority of closed loans included
Bardstown, Ky. (73 percent), Hobbs, N.M. (71 percent), Dalton, Ga.
(65 percent), Victoria, Texas (63 percent) and Appleton, Wisc. (63
percent). Interestingly, while Millennials gravitate toward more
affordable housing markets in the Midwest and Southeast, they are
also continuing to settle down in more expensive markets in big
cities. Over the last three years, the percentage of closed loans
for homes near New York, Chicago, Los Angeles and San Francisco
have increased.
“This new generation of homebuyers is making its presence felt
across the country,” said Joe Tyrrell, executive vice president of
corporate strategy for Ellie Mae. “Since the beginning of 2016, the
percentage of Millennials purchasing homes in the Bay Area has
actually increased from 16 percent to 20 percent.”
The major metropolitan areas are seeing healthy participation
from Millennials, with the New York area seeing an increase from 19
percent in 2015 to 24 percent of homebuyers being Millennials in
2017. For areas such as Chicago and Dallas, the growth has been
even more impressive with Chicago experiencing an increase from 22
percent to 31 percent and Dallas experiencing an increase from 21
percent to 31 percent over that same period of time.
“In this purchase centric market, we anticipate a continued rise
in more creative lending products to help increase Millennials’
access to credit and continue to counter concerns that rising
interest rates will stifle volume,” Tyrrell said.
Other key findings from the April data include:
- Time to close loans to Millennial
borrowers decreased in April, taking 42 days on average, down from
43 days in March
- FHA loans remained popular with
Millennials, comprising 35 percent of all closed loans in April,
down from 36 percent the month prior
- Both Conventional and FHA loans took an
average of 42 days to close, on par with averages for March
- The average FICO score for Millennial
borrowers was 720 in April, holding steady from the month
prior
- Across all loans, both the average
debt-to-income ratio (DTI) and loan-to-value (LTV) remained flat
from the month prior, at 24/34 and 88, respectively
Ellie Mae® (NYSE:ELLI) is a leading provider of innovative
on-demand software solutions and services for the residential
mortgage 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 75 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 a leading provider of innovative
on-demand software solutions and services for the residential
mortgage industry. Mortgage lenders of all sizes use Ellie Mae’s
Encompass® all-in-one mortgage management solution, Mavent
Compliance Service, and AllRegs research, reference and education
resources to improve compliance, loan quality and efficiency across
the entire mortgage lifecycle. Visit EllieMae.com or
call 877.355.4362 to learn more.
© 2017 Ellie Mae, Inc. Ellie
Mae®, Encompass®, AllRegs®, 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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Ellie Mae, Inc.Erica Harvill,
925-227-5913Erica.harvill@elliemae.comorAllison+PartnersAlexandra
Gardell Kreuter, 646-428-0618EllieMae@allisonpr.com
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