Millennials Accounted for 84 Percent of Closed Loans
March 2, 2017
Well, it looks like the Millennials are finally making their presence known in housing. According to new data from Ellie Mae, mortgages to Millennial borrowers for new home purchases accounted for 84 percent of closed loans during January, up from 82 percent in December and up from 77 percent from August through November.
Federal Housing Administration (FHA) loans represented 35 percent of all Millennial-based loans closed in January, a slight uptick from 34 percent in December. FICO scores across all loan types dipped in January to an average of 724 from their peak of 726 from August through October. And it took Millennials an average 49 days to close on their loans in January, a day longer than in November and December.
“As the purchase market heats up, we will continue to watch the FHA purchase trend amongst millennials,” said Joe Tyrrell, Ellie Mae’s executive vice president of corporate strategy. “It is not surprising to see millennial borrowers leverage FHA loans because they typically offer lower down payments and lower average FICO score requirements than conventional loans. As more millennials enter the market, we expect to see the popularity of FHA loans continue to increase.”
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