The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

Steve Murray on the importance of protecting property rights

In this episode, Steve Murray, RealTrends advisor and industry stalwart, discusses some of the issues facing private property rights, including how a case in Germany could potentially affect U.S. legislation.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

Mortgage

Ever-mobile Millennial housing demand unchecked by rising mortgage rates

Can you guess where they’re buying? Probably not…

The housing demand among the ever-mobile Millennial generation went unchecked in August despite rising mortgage rates, according to the Ellie Mae Millennial Tracker.

In fact, despite Millennials’ average 30-year note increasing to 4.211%, up from 3.706% last year, their loan amounts also increased in August to $185,919. This is up from $184,113 in August 2016. Further, the generation is showing a growing willingness to shun the big cities and settle down in once-sleepy towns.

“Average loan amounts in August of this year were slightly higher than last year, despite higher interest rates,” said Joe Tyrrell, Ellie Mae executive vice president of corporate strategy. “As tends to happen with tight inventories, this is a seller’s market, and many of today’s homebuyers may be faced with paying a premium for the same home they might have bought for less last year.”

“For those who are committed to buying a home, though, slight increases in competition, costs or interest rates will likely not deter them,” Tyrrell said.

Conventional loans held steady at 64%, and the share of FHA mortgages stayed at 32%, the same market shares they have held since June.

So what exactly did the average Millennial homebuyer look like in August? Ellie Mae shows us they were just over 29 years old, and took out a conventional loan of $185,919 on a home with an appraised value of $223,882. Their FICO score was 724, and, as seen above, their 30-year mortgage note rate was 4.2%.

These borrowers, of whom 52% were married, typically closed out their home-buying process in 44 days.

Of course, this picture varies in different regions of the U.S. On the West coast, for example, Millennials averaged nearly 31 years old and took out much higher loans at $314,579. In the Midwest, Millennials took out lower mortgages of just $158,584. Borrowers in Hawaii took out the highest loans at $396,766.

Although some Millennials, about 12%, are refinancing, the majority, 87%, took out closing loans.

And in what may be a growing trend, Millennials are moving away from the larger metros.

The top five markets with the highest percentage of Millennial homebuyers in August are:

  1. Lima, Ohio
  2. Batavia, New York 
  3. Dyersburg, Tennessee
  4. Roswell, New Mexico
  5. Kendallville, Indiana

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3d rendering of a row of luxury townhouses along a street

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