Millennials jumped on lower interest rates to refinance
Millennials took advantage of lower interest rates in September to refinance their mortgages, according to Ellie Mae's Millennial Tracker. About 14% of all closed loans were made to millennial borrowers in September, the highest this percentage has been since February.
Refinances for conventional loans made to millennial borrowers rose 2 percentage points from August to 17%, and Federal Housing Administration loan refinances rose to 5% from 4%. During this same time, U.S. Department of Veterans Affairs refinances grew to 30%, up from 28% in August.
"With average interest rates falling to their lowest point in 2017, millennials are taking advantage of refinance opportunities,” said Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae, in a press release.
"While we are also seeing millennials with more purchase power, the uptick in refinances indicates maturity among those millennials who previously purchased a home and are looking for an opportunity to lower their monthly interest payments," he continued.
The average primary millennial borrower for the month of September was about 31.5 years old with a FICO score of 732. About two-thirds of those who refinanced were married and one-third were single.
The average FICO score for millennial borrowers fell one point from 724 to 723.
The best markets for millennial borrowers in September were Cumberland, Md., Gillette, Wyo., Williston, N.D., Cadillac, Mich., and Fairmont, W.Va.
Of all closed loans in September, the share of conventional loans increased one percentage point to 65%, while FHA loans inched down from 32% to 31%.