PLEASANTON, Calif.,
Nov. 4, 2020 /PRNewswire/
-- With interest rates nearing 3% for all loans, many
millennials took advantage of the opportunity to refinance their
mortgages in September, according to the latest Ellie Mae
Millennial Tracker. Refinances climbed to 43% of all closed loans
for millennials in September, up 3% from the previous month.
Refinances accounted for 51% of Conventional loans in September,
the highest percentage since June, and up from 48% just the month
prior.
In September, older millennials locked in slightly higher
interest rates of 3.00%, on average, compared to 2.98% for younger
millennials. With interest rates historically low, the share of
refinance loans increased for both sub-groups of millennials.
While millennials are buying homes, the end to summer homebuying
seasonality meant purchases dipped for the second month in a row,
accounting for 56% of all closed loans, down from 59% in
August.
"We have seen a steady increase in refinances among millennials
over the past month, as homeowners took advantage of historically
low interest rates," said Joe
Tyrrell, president, ICE Mortgage Technology, a division of
Intercontinental Exchange, Inc. (NYSE: ICE). "However, the bulk of
the millennial generation is still entering the market as
first-time homebuyers and they're swooping up the limited inventory
that is available in most markets."
Conventional purchase loans shrunk to 48% for the month, down
from 52% in August. VA refinances stayed steady at 35%
month-over-month, and VA purchase loans held at 65%
month-over-month during this same time period. Meanwhile, FHA
percentages have held steady for the past four months.
Time-to-close for all loans increased to 49 days in September,
compared to 47 in August. Given the increase in refinances, the
time-to-close on refinance loans also increased by two days,
month-over-month, to 55 days in September.
The Ellie Mae Millennial Tracker offers insights into two groups
of millennial homebuyers: older millennials between 30 and 40 years
old, and younger millennials between 21 and 29 years old.
Ellie Mae
Millennial Tracker – Older Millennials vs. Younger
Millennials
|
|
|
Older
Millennials
|
Younger
Millennials
|
Closed Loans
(Share) — All
|
Refinance
|
51%
|
22%
|
Purchase
|
48%
|
77%
|
Loan Type -
All
|
FHA
|
12%
|
24%
|
Conventional
|
85%
|
72%
|
VA
|
1%
|
1%
|
Other
|
1%
|
3%
|
Time To Close
(Days) — All
|
All
|
50
|
45
|
Refinance
|
55
|
54
|
Purchase
|
44
|
43
|
Average Interest
Rates
|
30 Year Note Rate —
ALL
|
3.00%
|
2.98%
|
30 Year Note Rate —
FHA
|
2.99%
|
2.98%
|
30 Year Note Rate —
Conventional
|
2.99%
|
2.97%
|
30 Year Note Rate —
VA
|
2.74%
|
2.74%
|
Average
FICO
|
747
|
728
|
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% 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, now ICE Mortgage
Technology, a division of Intercontinental Exchange, Inc. (NYSE:
ICE), is the leading cloud-based loan origination platform provider
for the mortgage 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.
© 2020 Ellie Mae, Inc. Ellie
Mae®, Encompass®, AllRegs®, Mavent®, Velocify®,
Capsilon®, 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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SOURCE Ellie Mae