Millennial mortgage activity remained vigorous as summer came to a close, according to Ellie Mae.
Mortgage applicants between 21 and 40 locked in an average 30-year interest rate of 3.105% — a number that continues to descend to new Millennial Tracker record lows. The rate fell from 3.256% in July and 4.059%
"Given the historically low interest rates, lenders are handling more loans now than they ever have before," Joe Tyrrell,
Purchase loans accounted for the lion's share of originations, though that percentage dwindled to 59%
The average millennial
The average age for millennial borrowers edged up to 31.8 years from 31.7 years in July and jumped from 30.5 years in August 2019.
The shares of conventional,
Married individuals accounted for a 60% majority of loans closed compared to 59% in July and 55% the year before. Overall, about 57% of primary borrowers were male,
The dynamics change when the data splits between older borrowers (between 30 and 40 years old) and younger borrowers (between 21 and 29 years old) millennials.
The elder group's August purchase share made up 52% compared to 79% for the younger group. By loan type, conventional mortgages made up an 83% share for older millennials versus 71% for younger, while FHA loans accounted for 13% and 25%, respectively. Average FICO scores for older millennials increased to 748 while the younger set, with less time for credit accumulation, hit 727.