ICE Mortgage Technology Millennial Tracker Finds Millennial Purchase Activity Increases, Even as Rates Rise
May 06 2021 - 9:00AM
Business Wire
ICE Mortgage Technology™, part of Intercontinental Exchange,
Inc. (NYSE: ICE), a leading global provider of data, technology and
market infrastructure, today shared that according to the ICE
Mortgage Technology™ Millennial Tracker purchase activity among
millennials increased in March, even as interest rates rose for the
first time since October 2020.
Purchase activity represented 51% of loans closed by millennials
in March – a notable increase from February’s 46% purchase share,
but on par with January’s 53%. This influx in purchase activity
occurred even as interest rates increased to 2.98%, up from 2.88%
in February.
Prior to March, interest rates had been steadily decreasing
since October 2020, when rates were at 3.03%. However, both younger
millennials (those born between 1991 and 1999) and older
millennials (those born between 1980 and 1990) experienced a slight
rate increase in March. On average, rates for younger millennials
increased from 2.85% in February to 2.96% in March, while rates for
older millennials increased from 2.89% in February to 2.99% in
March.
“Although rates are increasing, they are still hovering at
record-low levels and will likely continue to be favorable for
millennials looking to purchase or refinance a home for a number of
months to come,” said Joe Tyrrell, President of ICE Mortgage
Technology. “As we enter the summer homebuying season, we are
seeing a traditional increase in purchase activity; however,
inventory remains extremely tight, so millennials may face steep
competition when looking to make a purchase.”
Average days to close a loan for millennial borrowers also
dipped to 48 – the first time this average has been below 50 days
since October 2020. This average is still a stark difference to
March 2020 when it took just 39 days to close a loan.
The average age of borrowers in this generation also remained
relatively high at 32.7 in March, down from 32.9 in February and
January’s record high of 33. Average FICO scores also decreased
across the board. In March average FICO scores for all millennial
borrowers dropped to 739, down from 742 the month prior.
ICE Mortgage Technology Millennial Tracker – Older
Millennials vs. Younger Millennials
Older Millennials
Younger Millennials
Closed Loans (Share) — All
Refinance
56%
29%
Purchase
43%
71%
Loan Type - All
FHA
11%
20%
Conventional
86%
76%
VA
2%
1%
Other
2%
2%
Time To Close (Days) — All
All
48
46
Refinance
49
49
Purchase
46
44
Average Interest Rates
30 Year Note Rate — ALL
2.99%
2.96%
30 Year Note Rate — FHA
2.96%
2.95%
30 Year Note Rate — Conventional
3.00%
2.98%
30 Year Note Rate — VA
2.57%
2.52%
Average FICO
747
729
The ICE Mortgage Technology 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 ICE Mortgage Technology’s
Encompass® all-in-one mortgage management solution. Given the size
of this sample, 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://icemortgagetechnology.com/millennial-tracker.
About the ICE Mortgage Technology Millennial Tracker
The ICE Mortgage Technology Millennial Tracker focuses on
millennial mortgage applications during specific time periods. ICE
Mortgage Technology 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 the Origination Insight Report, which details aggregated,
anonymized data pulled from Encompass by ICE Mortgage Technology
origination platform. Additional information regarding the
Origination Insight Report can be found at
http://icemortgagetechnology.com/resources/origination-insight-reports.
News organizations have the right to reuse this data, provided that
ICE Mortgage Technology, Inc. is credited as the source.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500
company that designs, builds and operates digital networks to
connect people to opportunity. We provide financial technology and
data services across major asset classes that offer our customers
access to mission-critical workflow tools that increase
transparency and operational efficiencies. We operate exchanges,
including the New York Stock Exchange, and clearing houses that
help people invest, raise capital and manage risk across multiple
asset classes. Our comprehensive fixed income data services and
execution capabilities provide information, analytics and platforms
that help our customers capitalize on opportunities and operate
more efficiently. At ICE Mortgage Technology, we are transforming
and digitizing the U.S. residential mortgage process, from consumer
engagement through loan registration. Together, we transform,
streamline and automate industries to connect our customers to
opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual
property rights of Intercontinental Exchange, Inc. and/or its
affiliates is located here. Key Information Documents for certain
products covered by the EU Packaged Retail and Insurance-based
Investment Products Regulation can be accessed on the relevant
exchange website under the heading “Key Information Documents
(KIDS).”
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 -- Statements in this press release regarding
ICE's business that are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion
of additional risks and uncertainties, which could cause actual
results to differ from those contained in the forward-looking
statements, see ICE's Securities and Exchange Commission (SEC)
filings, including, but not limited to, the risk factors in ICE's
Annual Report on Form 10-K for the year ended December 31, 2020, as
filed with the SEC on February 4, 2021.
© 2021 ICE Mortgage Technology, Inc. All rights reserved.
Encompass®, Millennial Tracker™, and the ICE Mortgage Technology
logo are trademarks of the entities of ICE Mortgage Technology.
Source: Intercontinental Exchange
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version on businesswire.com: https://www.businesswire.com/news/home/20210506005336/en/
Sara Holtz ICE Mortgage Technology (925) 227-2193
sara.holtz@ice.com
Jenny Gendron ICE Mortgage Technology (925) 437-9118
jenny.gendron@ice.com
Alexandra Gardell Kreuter Allison+Partners (646) 428-0618
ICEMortgageTechology@allisonpr.com
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