Refis Rise Among Millennials in November: Ellie Mae
Refinance volume rose among millennial borrowers in November, reflecting a nationwide trend, according to Ellie Mae.
While purchase loans still are the vast majority of mortgages originated for millennials, its share has continually declined since the Pleasanton, Calif.-based company started tracking this data in the summer of 2016.
Refinances represented 22% of all loans originated to millennial borrowers in November, Ellie Mae reported Monday in its Millennial Tracker, up from 14% in June when the monthly report launched. Purchase loans dropped to 77% of all loans, down from 85% in June.
"While we have seen a steady increase in refinances among millennials, the bulk of this generation is still entering the market as first-time homebuyers," said Joe Tyrrell, executive vice president of corporate strategy at Ellie Mae. "Across the board, we're continuing to see strong interest in homeownership from this younger generation."
Conventional loans represented 57% of those that millennial borrowers took out, with FHA loans representing 14% and VA loans 1%. The average loan amount for a millennial borrower was $182,383, though the average was higher at $223,979 for refinances.
Average days to close remained flat at 47, compared to October. However, for refinances the time to close went up by two days to 51, and the figure rose one day to 46 for purchases.