According to Ellie Mae’s most recent Millennial Tracker for March, millennial homebuyers are moving to the Midwest. Homes in Midwestern states have proven to be more affordable, and Mount Vernon, Illinois was the most popular metropolitan area for homes purchased by Millennial buyers. Millennials are also moving to other Midwestern cities including Hutchinson, Kansas; New Philadelphia-Dover, Ohio; Defiance, Ohio; Dickinson, North Dakota; Owosso, Michigan; and Ashland, Ohio. Other popular cities for millennials included Midland, Texas and Odessa, Texas.
“What this data shows is where there is an inventory of affordable homes, the millennial buyers are ready to enter the market,” said Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae. “We expect to see this trend continue as average FICO scores decline and affordable loan options become more available to millennial homebuyers.”
The Millennial Tracker also found that a little over half of millennial borrowers were married, at 51 percent. The average age of these millennial buyers was 29.5 years old, and Ellie Mae found that mostly men were listed as the primary borrower, at 65 percent, compared to 32 percent of women.
Millennials continue to close on loans quicker, with the time to close dropping from 44 days in February to 43 days in March, and the average time to close on a purchase fell from 42 to 41 days.
The Ellie Mae Millennial Tracker is a monthly measure of millennial mortgage applications, and Ellie Mae defines millennials as applicants born between 1980 and 1999. TO find out more, and to see the complete Millennial Tracker, click here.