Millennials Still Prefer Conventional Home Loans

Mar 08, 2018

For the sixth consecutive year, Millennials are the dominant force in the homebuyer market, according to new data from the National Association of Realtors (NAR)

Approximately two-thirds of all closed home loans by Millennial borrowers in January were conventional loans, according to new data from Ellie Mae.

The 67 percent rate for closed loans by Millennials was the highest percentage recorded in two years. Purchases accounted for 81 percent of all closed loans to Millennials during January, down from 84 percent the month prior, and refinances accounted for 18 percent, up from the 15 percent level that was maintained since October 2017. The average FICO score of Millennial borrowers who closed loans in January increased to 723, up from 722 in December.

“Historically we have seen Millennials look to FHA programs to help address their homebuying needs, but in the past two months, FHA loans have represented less than 30 percent of the total loans for Millennials,” said Joe Tyrrell, Executive Vice President of Corporate Strategy for Ellie Mae. “We view this as an indication that more Millennials are qualifying for conventional mortgages.”

About the author

Phil Hall

Link copied

Published

Mar 08, 2018

Analysis and Data

Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

The September jobs report gave the mortgage market something it hasn't had much of lately: downward pressure on Treasury yields.U.S. employers added just 29,000 jobs in September, while the unemployment rate edged up to 4.2%, according to the Bureau of Labor Statistics. The ...

Wholesale

The Loan Store Rebrands As Averra Financial

The wholesale lender is adopting a new identity three years after acquiring Homepoint’s wholesale business and rising to No. 4 in industry rankings

The Loan Store has a new name after a three-year expansion that transformed the once-small wholesale lender into one of the largest players in the broker channel.The Tucson, Arizona-based lender has rebranded as Averra Financial Inc., effective immediately, the company annou...

Nov

Houston, TX

More from

Analysis and Data

Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Analysis and Data

Oct 02, 2026

Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Analysis and Data

Oct 01, 2026

Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Analysis and Data

Sep 29, 2026

Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Analysis and Data

Sep 25, 2026

Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Analysis and Data

Sep 25, 2026

Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Tech

Sep 23, 2026

Popular