Slightly more than nine out of 10 mortgages to millennial borrowers during June were for new home purchases, according to the latest Ellie Mae Millennial Tracker.
According to the tracker, 91 percent of closed loans to millennial borrowers in June were for new purchases, up from 90 percent in May. During the second quarter of 2018, the millennial homeownership rate increased to 36.5 percent of all homeowners, up from 35.3 percent during the previous quarter.
“As it remains a competitive, purchase-centric market, we will continue to keep a close eye on the purchase trends amongst millennials,” Ellie Mae Executive Vice President of Corporate Strategy Joe Tyrrell said in a release. “This new generation of homebuyers wants the capability of an on-demand mortgage, and we are working to provide borrowers a convenient and secure digital mortgage offering that makes the home buying process a seamless experience.”
Ellie Mae said conventional loans represented 69 percent of all loans closed for millennials in June, up from 68 percent in May. FHA loans represented 27 percent of all closed loans to millennials, down 1 percentage point from the previous month.
The average FICO from all closed loans by millennials in June was 723, up from 721 from March through May. Ellie Mae said it took millennials an average of 42 days to close on loans in June, a day longer than in March, April and May.
The tracker found that the top housing markets for millennials in June were Clarksburg, W.Va. (65 percent); Watertown, S.D. (65 percent), Boone, Iowa (64 percent) and Dickinson, N.D. (61 percent).