Turns out when it comes to mortgages, both conventional and refinanced, millennials are mostly like the rest of the age groups. Their rates are down while their refinancing numbers are up.
Millennials saw average interest rate on all 30-year loans closed by millennials in January dropped to 3.94%, down slightly from 3.95% in December, according to new research from Ellie Mae, the cloud-based platform provider for the mortgage finance industry. Ellie Mae classifies millennials as those born between 1980 and 1999.
“January was a favorable market for both millennial homebuyers and homeowners looking to capitalize on lower interest rates by refinancing their mortgages,” said Joe Tyrrell, chief operating officer at Ellie Mae. “With the purchase power of millennials increasing and inventory still tight across the country, we expect millennials to continue to search outside of major metropolitan areas, where there is more inventory, when making their homebuying decisions.”
January also saw refinance share among millennials jump up after consecutive months of decline. During the month, 31% of loans closed by millennials were refinances, up from 27% in December. For conventional loans, which represented 71% of total loans closed in January by this demographic, refinance share increased from 33% to 38% month-over-month as average rates dipped slightly.
Read more about millennial mortgage numbers. https://www.elliemae.com/about/news-reports/press-releases/refinance-activity-on-the-rise-as-interest-rates-drop-according-to-the-latest-ellie-mae-millennial-tracker