Millennial refinances notch record high, while closing times surge

Aly J. Yale
The Mortgage Reports contributor

A wave of refis

The number of Millennial refinances recently hit a record high, accounting for more than a third of all closed loans in a single month. The share is even higher on VA and conventional loans.

Verify your new rate (Apr 5th, 2020)

Millennial refinances hit new high

According to the latest Millennial Tracker from mortgage technology provider Ellie Mae, refinances made up a whopping 34 percent of all Millennial closed loans in October. That’s an all-time high for the group.

Millennial refinances comprised an even larger share of VA and conventional loans at 42 and 41 percent, respectively.

Joe Tyrrell, Ellie Mae’s chief operating officer, says it all comes down to low interest rates. Rates on 30-year loans averaged a mere 3.9 percent in October.

“Declining interest rates have significantly increased Millennials’ awareness of refinancing as a fiscally responsible option, and we’re seeing more and more homeowners in this demographic take advantage of refinancing their mortgages,” Tyrrell said. 

Here’s what Millennials want in a starter home

A snapshot of refinancing

Longer closing times are further evidence of the growing interest in refinancing. According to data, it took 44 days to close a refinance loan in October — up two days from September. 

FHA refinancing took the longest time to close at 51 days, while conventional ones went the quickest at 44 days. For reference, 90 percent of all Millenial refinances in October were conventional loans.

The average interest rate was 3.826 percent.

For Millennials, homeownership is more important than marriage, kids

The top city for Millennial refinances was Waterloo, Iowa. There, 50 percent of all refinancing was done by Millennials for the month.

Newton and Ames, Iowa also saw high shares of Millennial refis, as did Vernal, Utah; Harrisonburg, Virginia; Cheyenne, Wyoming; and Effingham, Illinois. 

The average Millennial refinancer was 32.5 years old, had a 751 credit score, was male and married. Their average appraised home value was $330,371. 

Verify your new rate (Apr 5th, 2020)

Get today’s mortgage rates

Are you thinking of reaping the benefits of refinancing? Then shop around and see what mortgage rates you qualify for today.

Verify your new rate (Apr 5th, 2020)