The percentage of refinance mortgages loan among millennials accounted for 15 percent of all closed loans for that group during December, according to the latest Ellie Mae Millennial Tracker.
Ellie Mae said December was the third straight month in which refinances accounted for 15 percent of all closed loans for millennial borrowers, which is the highest percentage of refinances for this demographic since February 2017 (17 percent). During December, purchase loans accounted for 84 percent of mortgage loans to millennials.
“With seasonality and low inventory levels at the end of the year, millennial borrowers continued to take advantage of refinance options during the fourth quarter,” Ellie Mae Executive Vice President of Corporate Strategy Joe Tyrrell said in a release. “Many may have been driven by a desire to take advantage of low interest rates given uncertainty about potential rate hikes in the new year.”
The tracker also indicated that the average 30-year note increased slightly from 4.18 in November to 4.22 in December; the average time to close all loans held at 44 days in December; and the average time to close a refinance held at 45 days, and the average time to close a purchase also remained flat at 42 days, the same since June 2017. The average FICO scores for all closed loans fell one point from the month prior to 722.
The top metropolitan statistical areas for millennials by percentage of mortgage loans closed in December were Casper, Wyo. (71 percent); Williston, N.D. (63 percent); and Victoria, Texas and Mount Pleasant, Mich. (both 61 percent).