Reporters discuss bombshell story on Better.com’s CEO

An exclusive interview with the Forbes reporters who recently wrote a bombshell article about Better.com CEO Vishal Garg’s controversial workplace culture.

Now is the time to double down on diversity and inclusion efforts

Quicken Loans Mortgage Services is proud to partner with a diverse set of brokers, which broadens the pool of potential clients they serve together.

How to Accelerate Closings in 2021

In this webinar, we’ll provide you with actionable insights to help you accelerate your closing process from point-of-sale through post-closing.

Why are sellers sitting on the housing market sidelines?

Why aren’t more homeowners selling in this hot housing market? According to new research from Zillow, a number of factors are at play.

Mortgage

Ellie Mae: Millennials using conventional over FHA hits all-time high

Millennial share of purchase loans increases

An increasing share of Millennials are now leaning toward conventional financing, rather than FHA, and even hit an all-time high in February, according to Ellie Mae’s Millennial Tracker.

About 68% of all mortgage loans in February were conventional, the highest percentage since Ellie Mae began tracking this trend in 2016. FHA loans remained flat from the previous month at 28%, their lowest point since 2016.

Millennials are also increasing their overall share in the housing market as Millennial purchase loans increased to 45% of all closed loans, up from 43% in December. Non-Millennial purchase loans decreased from 57% of all loans in December to 55% in February.

And this is despite rising interest rates, which increased from 4.25% in January to 4.4% in February, the highest recorded since June 2014.

While conventional loans saw a drop in the number of days it took to close, FHA and VA mortgage saw the greatest improvement. Conventional mortgages decreased from 44 days to close in January to 42 days in February.

During that same time period, FHA loans fell from 55 days to 44 days while VA loans fell from 51 days to 42 days. These are also down from 54 and 57 days respectively in December.

Breaking it down by gender, the average male Millennial held a credit score of 725 and took out a mortgage of $199,352. The average female Millennial borrower took out a loan of $189,084 and held a credit score of 723.

“According to the U.S. Census, Millennials are now officially the largest group of homebuyers in the U.S.,” said Joe Tyrrell, Ellie Mae executive vice president of corporate strategy.

“Despite rising interest rates, we’re continuing to see Millennials exercise their purchase power across the United States as they represent 45% of total closed purchase loans in February,” Tyrrell said. “And with the spring home-buying season now underway, we’ll see if the activity increases for this growing group of homebuyers.”

Most Popular Articles

The downside of the hot 2020 housing market: rapid home-price growth

The mismatch in the COVID deflationary impact toward the economy overall and the strength of the housing market due to demographics makes for a troubling formula for home-price growth, which we are seeing. The recent NAR existing home sales report showed 15.5% year-over-year growth in prices. HW+ Premium Content

Nov 30, 2020 By

Latest Articles

Fannie and Freddie need “significant capital” to leave conservatorship, Mnuchin says

In a hearing before the House Financial Services Committee, Treasury Secretary Steven Mnuchin said no definite plans have been made for the future of Fannie Mae and Freddie Mac, but discussed the idea that they could be released from conservatorship before their full capital levels are reached.

Dec 02, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please