On Wednesday, at 10 a.m. EST, Ellie Mae will release their Origination Insight Report and the Millennial Tracker, an online tool built to provide clarity for those looking to analyze trends in the buying behavior of millennials.
The Millennial Tracker for August 2018 found that percent of loans taken out by millennials were conventional loans. That percentage is up 5 points year-over-year, and so far measures higher than it has since 2015. FHA loans for millennials have meanwhile fallen 5 percent, whereas VA loans for millennials haven’t budged from 2 percent overall; 3 percent of all home loans for this age group remain unspecified.
Digging deeper into the numbers, it would appear that of these conventional home loans taken out by millennial borrowers, 89 percent in August were for new home purchases—also up 5 percent year-over-year—whereas another 9 percent were taken to refinance (with 1 percent remaining unspecified).
The tracker also found that the majority of millennial borrowers are male—nearly outpacing women two-to-one (61 percent to 32 percent; the remainder does not specify gender). FICO scores for millennial borrowers have slowly declined as well, down a single point in the last month (from 723 to 722) and have dropped a total two points since July last year. The average age of all millennials taking out home loans stands at 29.8 percent, up less than half a percent from a year ago.
Access the Millennial Tracker here after registering with Ellie Mae’s website.
Here’s what else is in store in The Week Ahead:
- CoreLogic Home Price Insights Report, Tuesday, 9 a.m. EST
- MBA Mortgage Apps, Wednesday, 7 a.m. EST
- Freddie Mac Primary Mortgage Market Index, Thursday, 8 a.m. EST
- NAHB Housing Opportunity Index, Thursday, 10 a.m. EST
- FOMC Meeting and Announcement, Thursday, 2 p.m. EST