In housing markets dominated by young borrowers, millennials took an even bigger share of overall mortgage activity in August.

At 72%, Lima, Ohio, had the largest share of millennial mortgage borrowers in August, according to data from mortgage software developer Ellie Mae. A year ago, the top market for millennials was Dickinson, N.D., but the market share was only 61%. The year-over-year trend was similar in each of the top 10 housing markets dominated by millennials in August.

 Top Millennial Housing Markets

 Aug. '17

 Millennial Share

 Aug. '16

  Millennial Share

Lima, OH72%Dickinson, ND61%
Batavia, NY 71% Safford, AZ 58%
Dyersburg, TN 71% Beaumont-Port Arthur, TX 56%
Roswell, NM 71% Huntington, IN 56%
Kendallville, IN 69% Terre Haute, IN 52%
Aberdeen, SD 65% Laredo, TX 51%
Sayre, PA 64% Kendallville, IN 50%
Williston, ND 58% Decatur, IN 50%
Ottumwa, IA 57% Texarkana, TX-AR 49%
Dickinson, ND 57% McAllen-Edinburg-Mission, TX 48%

In August, conventional loans for millennials remained steady at the end of the summer, and comprised 64% of all loans closed by the generation. FHA mortgages have held steady at 32% since June.

Despite the average 30-year note rate having increased about 0.5% from last year, the average loan amount for loans closed by millennial borrowers inched up to $185,919 in August. Millennials closed an average of $184,113 in loans during the same period last year.

"As tends to happen with tight inventories, this is a seller's market, and many of today's home buyers may be faced with paying a premium for the same home they might have bought for less last year," said Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae, in a press release. "For those who are committed to buying a home, though, slight increases in competition, costs or interest rates will likely not deter them."

The average millennial primary borrower in August was 29.4 years old with a conventional loan amount of $185,919 to purchase a home with a $223,882 average appraised value. The average borrower had a 724 FICO score, helping to secure a 30-year note rate of 4.211%. At 64%, the majority of primary borrowers were male, closed their homes in about 44 days, and about 52% were married.

Female borrowers increased their purchase power, with closed loans averaging $189,574, up from $184,094 from last year.

Average millennial borrowers on the West Coast were slightly older at 30.6 years old, taking out an average loan amount of $314,579. In the Midwest, loan amounts were lower, with borrowers taking out an average loan amount of $158,584 in Kansas, for example. Comparatively, in Hawaii, borrowers aged 31.4 years took out loans amounting to about $396,766.

Overall, 87% of loans closed by millennials in August were for a home purchase, and 12% were for a loan refinance.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry