The percentage of refinances among millennials in December dropped for the second straight month, according to the latest Ellie Mae Millennial Tracker.
Ellie Mae said refinances by millennials in December were 27 percent of all loans closed, down 4 percent compared with the previous month. December’s decline in refinances was the largest month-over-month drop during 2019.
The decrease in refinance share in December coincided with 30-year notes increasing to 3.95 percent, up slightly from November.
“The refinance boom potentially ending is a major topic of discussion in the industry at the moment, but the reality is that if we take a step back and look at the last year, overall the market is still favorable for homeowners looking to refinance and millennials considering purchasing their first home,” Ellie Mae Chief Operating Officer Joe Tyrrell said in a release.
“Whether millennials are refinancing more or increasing their purchase activity, the reality is that this demographic plays a central role in shaping the market,” Tyrrell said. “Lenders can best set themselves up for success by understanding that, throughout the mortgage process, millennials want automation and human touch working in concert to create the best customer experience possible.”
During December, it took a day longer to close refinances than in November. Time-to-close held steady at 43 days for all loan types and 42 days for purchase loans, Ellie Mae said.
Ellie Mae said the average FICO score for all millennial borrowers in December increased from 721 to 728.