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Falling Interest Rates Boost Millennial Refinancing

Sep 04, 2019
Photo credit: Getty Images/marchmeena29

The decline in interest rates in July helped lift refinance activity for Millennials, according to new data from Ellie Mae.
 
The average interest rates on all 30-year notes fell from 4.39 percent in June to 4.19 percent in July, which marked the lowest average monthly rate for Millennials since November 2017. As a result, Ellie Mae noted, the Millennials’ share of refinances jumped nine percent month-over-month, reaching 23 percent.
 
For all conventional loans closed by Millennials in July, 27 percent were refinances, up 10 percent from June. The share of refinances for all closed FHA loans increased two percent and the share of refinances for all VA loans rose by seven percent.
 
“We’ve seen interest rates for Millennials drop consistently throughout 2019, but from April through June, the refinance market was essentially flat,” said Joe Tyrrell, chief operating officer at Ellie Mae. “In the months leading up to July, consumers believed that rates would continue to decrease, and they were correct. Now, Millennials are reaping the rewards and locking in historically low rates.”

 
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