ICE Mortgage Technology Millennial Tracker Finds Share Of Millennials Poised For Homeownership Increases as FICO Requirements Loosen
ICE Mortgage Technology™, part of Intercontinental Exchange, Inc. (ICE), a leading global provider of data, technology and market infrastructure,shared that according to the ICE Mortgage Technology™ Millennial Tracker, the percentage of purchase activity to total closed l**** among millennials increased for the third consecutive month.
Recommended AI News: Wondershare Filmora V10.5 Elevates Creative Video Editing To A New Level
“With FICO score requirements loosening, millennials are taking advantage of the current environment to continue to jump into homeownership.”
In May, 67% of l**** closed by millennials on the Encompass® by ICE Mortgage Technology origination platform were for purchases, up from 61% in April 2021 and 51% in March 2021. Purchases accounted for 82% of l**** closed by younger millennials (born between 1991 and 1999), up from 78% in April. For older millennials (millennials born between 1980 and 1990) purchases accounted for 60% of all closed l****, up from 53% in April.
Average FICO scores for millennial borrowers decreased for the fourth consecutive month. In May, average FICO scores for borrowers of this generation dipped to 732, down from 734 in April and 739 in March.
“Across the country, we’re seeing a strong and competitive purchase market, particularly among millennials,” said Joe Tyrrell, President of ICE Mortgage Technology. “With FICO score requirements loosening, millennials are taking advantage of the current environment to continue to jump into homeownership.”
Recommended AI News: BIMI Surges Forward With Valimail’s Amplify Solution
May was also the second consecutive month in which purchase share for older millennials was larger than r******** share. In May, 60% of l**** closed by older millennials were purchases while 38% were refinances. Older millennials have not closed more purchases than refinances since August 2020, when purchases by the cohort accounted for 52% of closed l****.
The average age of millennial borrowers continues to hover around 32 years. In May, the average borrower age was unchanged from April’s average of 32.4 years old.
Average days to close a loan for all millennial borrowers decreased to 46, down from 48 in April. Days to close a r******** loan decreased month-over-month from 52 in April to 50 in May, while days to close a purchase loan held steady at 44 days.
ICE Mortgage Technology Millennial Tracker – Older Millennials vs. Younger Millennials
|
|
Older Millennials |
Younger Millennials |
|
Closed L**** (Share) — All |
||
|
R******** |
38% |
17% |
|
Purchase |
60% |
82% |
|
Loan Type – All |
||
|
FHA |
14% |
21% |
|
Conventional |
82% |
75% |
|
VA |
2% |
1% |
|
Other |
2% |
2% |
|
Time To Close (Days) — All |
||
|
All |
46 |
45 |
|
R******** |
49 |
46 |
|
Purchase |
45 |
43 |
The ICE Mortgage Technology Millennial Tracker is an interactive online tool that provides access to up-to-date demographic data about this new generation of homebuyers. It mines data from a robust sampling of approximately 80% of all closed mortgages d***** back to 2014 that were initiated on ICE Mortgage Technology’s Encompass® all-in-one mortgage management solution. Given the size of this sample, it is a strong proxy of millennial mortgage indicators across the country. Searches can be tailored by borrower geography, age, gender, marital status, FICO score and amortization type.
Recommended AI News: Runway Launches “Sequel”, a Powerful ML-Based Video Editing Tool
Comments are closed.