Millennial conventional mortgage volume at three-year high: Ellie Mae
August's share of conventional mortgages closed by millennials reached a three-year high as lenders added products to meet their lifestyle, according to Ellie Mae.
Conventional loans made up 69% of all loans to millennials, the highest percentage since February 2015 and up from 64% one year ago.
Federal Housing Administration-insured loans were 27% of the total, which was down from 32% in August 2017, while Veterans Affairs-guaranteed loans were flat at 2%.
"As the industry continues to understand millennials and the new paradigms that a gig economy brings, we are seeing conventional loan products that are able to meet the needs of this important home buying generation," Joe Tyrell, Ellie Mae's executive vice president of corporate strategy, said in a press release.
The vast majority of conventional loans made to millennials, 89%, were to purchase a home, flat when compared with July but up five percentage points from August 2017.
Refinancings were the purpose for 9% of all closed loans and 10% of conventional closed loans given to millennials in August.
The primary borrower for 60% of August's loans to millennials were males, with 32% females while for 8% the gender was unspecified.
Married millennials made up 51% of borrowers, while the share of singles was 48%. The average age was 29.9 years old.
The average loan amount was $195,651, down from $197,252 in July but up from $185,919 in August 2017.
The average loan-to-value ratio was 86%, the average note rate 4.85% and the average credit score was 724.