As the housing market shifts further in favor of homebuyers, Ellie Mae’s latest Millennial Tracker Survey reveals that purchase requests from Millennials increased to 87% of all purchase requests made in February, a 2% increase from January.
The survey also revealed that although conventional loans continue to be the most popular loan product among the generation, they fell slightly to 68% of all loans.
Interest in refinances fell two percentage points from the previous month, coming in at 11% of all loans for Millennial borrowers.
“The percentage of purchase loans is on the rise with Millennials continuing to enter the homebuying market for their first or maybe even second purchase,” Executive Vice President of Strategy and Technology Joe Tyrrell said. “The increase in days-to-close we saw in February is relative to the percentage increase in purchases versus refinances, as purchases typically take longer to close.
According to the survey, it typically took Millennials 46 days to close on conventional loans, which is the longest average time to close since January 2017. Among conventional loans closed by Millennials in February, it typically took the generation 44 and 53 days to close on a purchase and refinance loans, respectively.
Notably, the Millennial Tracker also discovered that the average time to close on all loans decreased to 42 days in February. During the same period, the average closing time on FHA loans fell to 42 days, while the average time to close on VA loans increased to 59 days month-to-month.
Lastly, the survey highlighted that the average FICO score for Millennial borrowers edged up to 723 in January, rising from 722 in January, according to Ellie Mae.
NOTE: The Ellie Mae Millennial Tracker provides access to up-to-date demographic data about Millennial homebuyers, mining data from approximately 80% of all closed mortgages dating back to 2014.