Millennial Refinance Activity Down
February 5, 2020
Last year ended with refinance activity by Millennials taking a downturn, according to new data from Ellie Mae.
During December, the refinance share of all closed loans by Millennials was 27 percent, down from 31 percent in November. This marked the largest month-over-month decline for Millennial refinance activity in 2019. However, the refinance share among this demographic is up by 17 percent from one year earlier.
From November to December, refinance share decreased five percentage points for conventional loans, which represented 71 percent of all loans closed during the month by Millennials. And despite the decline in refinance activity, it took one day longer to close refinances December compared to the previous month.
"The refinance boom potentially ending is a major topic of discussion in the industry at the moment, but the reality is that if we take a step back and look at the last year, overall the market is still favorable for homeowners looking to refinance and millennials considering purchasing their first home," said Joe Tyrrell, chief operating officer at Ellie Mae. "Whether millennials are refinancing more or increasing their purchase activity, the reality is that this demographic plays a central role in shaping the market. Lenders can best set themselves up for success by understanding that, throughout the mortgage process, millennials want automation and human touch working in concert to create the best customer experience possible."
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