Making moves to refinance
Low mortgage rates have spurred a refinance surge across all age groups, but Millennials are particularly on board. According to new data, refinances accounted for a full quarter of all Millennial mortgage loans in August.
Rates cause Millenial refinance surge
The latest Millennial Tracker from mortgage technology provider Ellie Mae shows that Millennials are refinancing in droves. In fact, refinances accounted for a whopping 25 percent of all Millennial mortgages in August alone. It’s the largest share of Millennial refis since December 2015.
On VA loans, the share was even higher, accounting for 38 percent of all closed loans.
As Joe Tyrrell, chief operating officer at Ellie Mae, explains, “We are seeing Millennial homeowners who may have purchased homes only a few years ago quickly taking advantage of the industry’s extremely low interest rates. We will also be watching to see if the increased purchase power from a lower rate environment enables some Millennials to make the leap into homeownership as we enter the fall homebuying season.”
A look at the Millennial mortgagee
Millennials also notched their highest average FICO score in over four years in August (728) and the highest average age in almost as long (30.5). Nearly half of all Millennial borrowers were single, and 60 percent were male.
For Millennials, homeownership is more important than marriage, kids
The average borrower put down 15 percent and had an average loan size of $205,806.
The top cities for Millennial buyers were Hobbs, New Mexico (where 68 percent of loans went to Millennials), Batavia, New York (63 percent); Laurel, Mississippi (62 percent); Dodge City, Kansas (62 percent); amd Platteville, Wisconsin (62 percent).
Millennials outrank Boomers on recent mortgages
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