The average number of days to close a home loan for a millennial varied significantly by state in July as buyers continued competing for tight inventory, according to Ellie Mae.
New York averaged 60 days to close a loan for a millennial, while in California it took 37 days, in Illinois 39 days and in Florida 45 days.
Nationwide, the average time to close all loans in July was 44 days; conventional loan closing times remained at 43 days, while the time to close a Federal Housing Administration loan increased by one day to 44. The average closing time for loans by the Department of Veterans Affairs declined from 46 to 42 days.
FHA refinance loans had the most significant change in closing times from June to July, jumping from an average of 45 days to close to 50.
The average time to close millennial purchase loans remained unchanged at 42 days from the previous month, while the average for refinance loans decreased by two days to 46 in July, despite an increase in refinance activity.
About 11% of all closed loans made to millennials in July were refinances, up slightly from 10% in June. Purchase loans comprised 89% of all loans closed to the generation.
Among conventional loans, the preferred loan product of millennial borrowers, refinances rose two percentage points to 14%, while purchases inched down by two percentage points to 85%.
"Between the competitive housing market with limited inventory and the 30-year note rate at a 2017 low, some millennial homeowners may be deciding to stay put and take advantage of the opportunity to refinance," said Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae, in a press release.
"With many more millennials interested in becoming homeowners for the first time, however, the purchase market is still very strong," he said.
The average 30-year note rate for all closed loans hit a new low for the year, decreasing from April's annual high of 4.34% to 4.18% in July.