Many millennials not waiting for marriage to buy a home: Ellie Mae
Nearly half of July's millennial homebuyers were single, a sign that they are not waiting for certain milestones like marriage before deciding to become homeowners, Ellie Mae said.
Furthermore, 53% of the single millennial buyers were male, while 40% were female; for the other 7% the gender was unspecified.
Single millennial homebuyers had an average loan amount of $172,904 and an average credit score of 720. Their married cohorts had a higher average loan balance, $277,651, and a 729 average credit score.
"Millennials are purchasing more homes than any other generation, and we're seeing many single borrowers take advantage of opportunities now rather than waiting to purchase a home around a big life event such as getting married or starting a family," Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae, said in a press release. "We're also seeing millennials get more for their money by purchasing homes in affordable markets."
In July, 90% of all closed loans made to millennials were for purchases, compared with 91% in June. The average loan amount was $197,252 with a 724 average credit score. By loan type, 69% were conventional loans, 27% Federal Housing Administration, 2% Veterans Affairs and 3% were unspecified. The weighted average loan-to-value ratio was 87%.
In the nation's 10 largest markets by population size, the highest share of closed loans made to millennials was in Philadelphia, at 40%. Chicago and Houston each had a 38% share, while Washington and Boston had a 35% share. New York, Dallas and Atlanta had a 33% share with Miami having a 27% share and Los Angeles a 22% share.
On the other hand, six smaller cities had a percentage of closed loans to millennials of 65% or more: Bay City, Mich., 68%; Aberdeen, S.D., 68%; Victoria, Texas, 67%; Williston, N.D., 67%; Austin, Minn., 66%; and Watertown, S.D., 65%.
Bay City had the largest share of closed loans to single millennials, at 68%, while for married borrowers it was Aberdeen at 76%.