When compared to older age groups, Millennials have the lowest average credit scores. Over the past three months of March, April, and May, the average credit score for Millennials applying for a mortgage loan was 730, CoreLogic reports. For Generation Xers that number was 738, 753 for Baby Boomers, and 770 for the Silent Generation. The lower credit scores make sense, as Millennials have had far less time to build their credit history than other generations.
Additionally, Millennials have the highest loan-to-value (LTV) ratios and debt-payment-to-income (DTI) ratios. For Millennials applying for a mortgage loan in the last 3 months, the average LTV ratio was 89 percent compared to 81 percent for Gen Xers, 73 percent for Baby Boomers, and 68 percent for the Silent Generation.
DTI ratios followed a similar pattern, although the Silent Generation had higher DTI ratios than Baby Boomers. Millennials and Gen Xers also had a higher gap between joint applications and single-borrower applications than Baby Boomers or members of the Silent Generation in terms of DTI ratio.
Across all generations, the average credit score for mortgage applications with two borrowers was higher than those with single borrowers.
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