Considering they are the future of the housing market, the mortgage industry is becoming increasingly interested in millennials. According to Joe Tyrrell, EVP of Corporate Strategy at Ellie Mae, more millennials are interested in becoming homeowners for the first time, which is leading to continued strength in the purchase market.
In its July Millennial Tracker, which focuses on mortgage applications for applicants born between 1980 and 1999, Ellie Mae reported the average days for millennial borrowers to close on a loan was 44. However, this varied depending largely on their location.
While Millennials in New York averaged 60 days to close on a loan, those in California only averaged 37. Falling in between those, Illinois millennials averaged 39 days while those in Florida averaged 45. The average time to close an FHA loan increased by one day since last month to 44 while VA loans decreased from 46 to 42 days. FHA refinance loans experienced the biggest jump from 45 days to close in June to 50 days in July.
“Between the competitive housing market with limited inventory and the 30-year note rate at a 2017 low, some millennial homeowners may be deciding to stay put and take advantage of the opportunity to refinance,” said Tyrell.
Refinances accounted for 11 percent of all closed loans by millennial buyers, up from 10 percent in June. The most popular loan product, Conventional loans, showed refinances increasing two points to 14 percent.
On average, single millennial men took out loans for $181,568, while single women averaged $170,301. Their average FICO credit score was 724, up from 723 in June and lower than July 2016’s 725. The average score for a conventional loan was 748, FHA loan at 688, and VA loan at 742.