Millennials’ Preference for Conventional Loans at Four-Year High – NMP Skip to main content

Millennials’ Preference for Conventional Loans at Four-Year High

Oct 03, 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)

Millennials overwhelmingly relied on conventional mortgages for their homebuying needs in August, according to new data from Ellie Mae.
 
During the month of August, 69 percent of all loans taken out by Millennials were conventional loans, the highest percentage recorded by Ellie Mae since February 2015. This level was up from 64 percent in August 2017. Among the other loan products, FHA loans represented 27 percent of all closed loans, down from 32 percent the year prior, while VA loans accounted for two percent, the same level as one year ago.
 
Ellie Mae also determined that 89 of closed conventional loans to Millennial borrowers were for purchases, up from 84 percent in August 2017. Purchases represented 90 percent of closed loans to Millennials in August, compared to 87 percent one year earlier. The average Millennial FICO score was 722, down slightly from 723 in July and 724 in August 2017, while the average age of all Millennial borrowers held steady at 29.8, down very slightly from 29.4 percent in the previous year.
 
“As the industry continues to understand Millennials and the new paradigms that a gig economy brings, we are seeing conventional loan products that are able to meet the needs of this important homebuying generation,” said Joe Tyrrell, Executive Vice President of Corporate Strategy for Ellie Mae.

 
About the author
Published
Oct 03, 2018
Strong Jobs Report Threatens Mortgage Rate Rally

October hiring more than doubled expectations, pushing Treasury yields higher

Nov 06, 2026
Fed Holds Rates, But Pricing Pressures Persist

Rising Treasury yields and fresh inflation data complicate rate locks, borrower qualification, and lender margins as markets anticipate another hike in December

Oct 29, 2026
Zippy Adds Capital For Manufactured-Home Lending Push

The $20 million investment from Saluda Grade will support expansion beyond 27 states and new loan products across wholesale, retail, and community channels

Oct 16, 2026
Inflation Hits 3.7%, Putting Mortgage Rate Relief At Risk

September’s inflation pickup puts recent rate improvements at risk, potentially eroding affordability gains from lower home prices and seller concessions

Oct 14, 2026
PLACE Acquires Ardley, Expanding Push To Turn Existing Borrowers Into New Loans

The latest deal connects borrower retention technology with Maxwell's origination platform and PLACE's real estate network, creating new opportunities for lenders

Oct 09, 2026
Equifax, TransUnion Launch New Tools To Cut Credit Report Costs

Both bureaus introduce ways to purchase credit scores separately from reports, while Equifax reports growing VantageScore adoption and extends $1 pricing through 2028

Oct 09, 2026