Millennials Step Back (Slightly) From FHA Loans: Ellie Mae … – Business Wire (press release)

PLEASANTON, Calif.–(BUSINESS WIRE)–The youngest generation to hit the homebuying market in force is taking
out fewer FHA-backed mortgage loans, according to June data from the Ellie
Mae Millennial Tracker
â„¢. Sixty-three percent of all closed loans
made to Millennial borrowers were conventional loans for an average
amount of $205,066. Thirty-two percent of closed loans were FHA loans
for an average amount of $173,381.

“Conventional and FHA loans make up the vast majority of loan types
among Millennials, and tend to track in cycles. The numbers for June
show us that, after a one-year high at 36 percent of all closed loans in
February and March, FHA loans have been steadily decreasing for the past
four months,� said Joe Tyrrell, executive vice president of corporate
strategy for Ellie Mae. “Conventional loans are rising, from 60 percent
in March to June’s 63 percent, indicating that, at least at the moment,
Millennials are slightly more able to afford a house without government
guarantees. Alternatively, this also demonstrates a potential
opportunity for greater borrower education on FHA and other loan options

The San Jose-Sunnyvale-Santa Clara region of California’s Bay Area
topped the list of most expensive metropolitan statistical areas (MSAs),
with an average loan amount of $598,606. By comparison, the average loan
amount for the state of California as a whole was $315,967. Average loan
amounts for other major metro areas include:

  • San Francisco-Oakland-Hayward – $543,851
  • Los Angeles-Long Beach-Anaheim – $436,967
  • Boston-Cambridge-Newton, Mass./N.H. – $364,767
  • Washington, D.C.-Arlington-Alexandria – $342,722

Other key findings from the June 2017 Ellie Mae Millennial Tracker

  • In June, 90 percent of all loans closed by Millennials were for
    purchases, with just 10 percent for refinances
  • Among FHA loans, 96 percent were for purchases and 4 percent were for
    refinances; Comparatively, for conventional loans, 87 percent were for
    purchases and 12 percent were for refinances
  • Across the nation, single men, on average, took out loans for
    $181,433, while single women averaged $166,996
  • Millennials continued to buy in the affordable Midwest, with
    Muscatine, IA, (average loan amount: $143,988) Watertown, S.D.,
    ($138,492) Frankfort, Ind.,($125,069) Oshkosh-Neenah, Wis., ($150,751)
    and Quincy Ill./Mo. ($107,589) making up the top markets overall
  • FHA refinance loans time-to-close took a significant drop, moving to
    45 days from 55 days in May

Ellie Mae® (NYSE:ELLI) is a leading provider of innovative
on-demand software solutions and services for the residential mortgage

The Ellie Mae 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
percent of all closed mortgages dating back to 2014 that were initiated
on Ellie Mae’s Encompass® all-in-one mortgage management
solution. Given the size of this sample and Ellie Mae’s market share, 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.

For more information, visit


The Ellie Mae Millennial Tracker focuses on Millennial mortgage
applications during specific time periods. Ellie Mae defines Millennials
as applicants born between the years 1980 and 1999. New data is updated
on the first Monday of every month for two months prior.

The Millennial Tracker is a subset of our Origination Insight Report,
which details aggregated, anonymized data pulled from Ellie Mae’s
Encompass origination platform. Additional information regarding the
Origination Insight Report can be found at
News organizations have the right to reuse this data, provided that
Ellie Mae, Inc. is credited as the source.


Ellie Mae (NYSE:ELLI) is the leading cloud-based platform provider for
the mortgage finance industry. Ellie Mae’s technology solutions enable
lenders to originate more loans, reduce origination costs, and shorten
the time to close, all while ensuring the highest levels of compliance,
quality and efficiency. Visit
or call (877) 355-4362 to learn more.

© 2017 Ellie Mae, Inc. Ellie
, Encompass®,
the Ellie Mae logo and other trademarks or service marks of Ellie Mae,
Inc. appearing herein are the property of Ellie Mae, Inc. or its
subsidiaries. All rights reserved. Other company and product names may
be trademarks or copyrights of their respective owners.

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