Millennial homebuyers turned to conventional purchase loans in August at the highest rate in three years, according to Ellie Mae’s Millennial Tracker.
In August, 69 percent of all loans taken out by millennials were conventional loans, the highest percentage since February 2015, and up from 64 percent a year ago.
FHA-insured loans represented 27 percent of all closed loans, down from 32 percent the year prior. VA-insured loans remained flat year-over-year at 2 percent.
“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 homebuying generation,” said Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae, in a press release.
Of the closed millennial loans in the month, 89 percent were purchase transactions. The closing time for loans fell to 41 days, three days faster than a year ago.
The report found the average age of all millennial borrowers held steady at 29.8.