Millennials took advantage of July’s low mortgage rates, especially younger Millennials. National Mortgage News describes younger Millennials as those between 21 and 29 and older Millennials between the ages of 30 and 40. COO of Ellie Mae suggested now is the ideal time for those younger Millennials to jump into home buying, but it appears they do not need to be told. For July, total purchase share grew to 81% for 20-somethings. For the older group, purchase share still grew to 53%. The average age for Millennial borrowers in July is 31.7.
The split of origination purpose for loans closed to millennials widened from the month prior. Purchases accounted for 61% of activity in July, up from June's 56%, but down from 76% year-over-year. Refinancing made up about 38% of July's millennial loans, decreasing from 43% the month prior, but up significantly from 23% the year before.
More of the same is expected going forward as larger numbers of potential shoppers come of age and better acquaint themselves with home buying.
"We're seeing a new wave of younger millennial homebuyers flood the market as we enter peak home-buying season," Joe Tyrrell, chief operating officer at Ellie Mae, said in a press release. "With interest rates at historic lows, now is the perfect time for younger millennials to purchase a home and start building equity. To encourage homeownership among the millennial generation, especially younger millennials, it is imperative lenders educate these borrowers on all loan types, including affordable options with less stringent credit requirements such as FHA loans."