According to a recent Millennial Tracker report from Ellie Mae, Millennials are not only buying homes, but also taking advantage of refinancing. This recent Housing Wire article by Brena Swanson gives the details on this latest Millennial home buying trend.
The overall number may still be small, but it’s growing. According to the latest Ellie Mae Millennial Tracker report, refinances by Millennial borrowers accounted for 20% of all closed loans in September, up from 17% of all closed loans in August.
Now compared to all of Ellie Mae’s loans, regardless of age, the data showed that 54% of closed loans were purchases and 45% were refinances.
The Ellie Mae Millennial Tracker focuses on Millennial mortgage applications during specific time periods, and the tracker is a subset of its Origination Insight Report. Ellie Mae defines Millennials as applicants born between the years 1980 and 1999.
“As the average rate on home loans continues to decline, we are seeing Millennials with more purchase power, indicated by the average loan amount increase,” said Joe Tyrrell, executive vice president of corporate strategy at Ellie Mae.
“We’re also seeing a slight uptick in the number of refinances in September, indicating maturity among those millennials who previously purchased a home and are looking for an opportunity to lower the cost on their existing mortgage.”
[Read the full article here]