Purchase loans accounted for 87 percent of all closed loans for millennials during February, up slightly from 85 percent in January, according to the latest Ellie Mae Millennial Tracker.
Ellie Mae said the percentage of refinance loans for millennial during February dropped two points to 11 percent. Conventional loans represented 68 percent of all loans for this group during February.
“The percentage of purchase loans is on the rise with millennials continuing to enter the homebuying market for their first or maybe even second purchase,” Ellie Mae Executive Vice President Joe Tyrrell said in a release. “The increase in days-to-close we saw in February is relative to the percentage increase in purchases versus refinances, as purchases typically take longer to close.”
According to the tracker, the time required for millennials to close conventional loans peaked in February to 46 days on average, up from 44 days the month prior and the longest average time to close since January 2017. Ellie Mae said it took 44 days on average to close a purchase (up from 42 days in January) and 53 days on average to close a refinance (up from 44 days the month prior).
During February, FICO scores for millennials closing loans increased to an average of 723, up from 722 in January. The hottest markets for millennials in February were Mitchell, S.D., Fort Morgan, Colo., and Jasper, Ind.