Refinances became more popular among Millennials during the fourth quarter of 2017, according to the latest Ellie Mae Millennial Tracker report.
The refinance share made up 15% of closed loans among Millennials in December for the third consecutive month, the report showed. This represents the highest percentage of refinances for this demographic since February 2017’s annual high of 17%.
The percentage of conventional refis remained the same at 19%, holding steady since October, while FHA refis also remained the same as the previous month at 6%.
“With seasonality and low inventory levels at the end of the year, Millennial borrowers continued to take advantage of refinance options during the fourth quarter,” said Joe Tyrrell, Ellie Mae executive vice president of corporate strategy. “Many may have been driven by a desire to take advantage of low interest rates given uncertainty about potential rate hikes in the new year.”
Although refinances are on the rise, the average 30-year note also increased from 4.18% in November to 4.22% in December among the Millennial population. But this was still lower than 2017’s highest monthly average of 4.34% in April.
The average time to close all loans held steady at 44 days in December. The average time to close a refinance remained at 45 days as the average time to close a purchase loan also held at 42 days. These both have remained the same since June.
The average FICO score for all closed loans slipped slightly by one point from the month before to an average 722 in December.