Data from mortgage software supplier Ellie Mae shows that Mount Vernon, Illinois was the most popular metro for millennial homebuyers, followed by Hutchinson, Kansas and several markets in Ohio.
“What this data shows is where there is an inventory of affordable homes, the millennial buyers are ready to enter the market,” said Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae. “We expect to see this trend continue as average FICO scores decline and affordable loan options become more available to Millennial homebuyers.”
In March 88% of closed mortgages for millennials were for purchase with an almost-even split between married (51%) and single (49%) buyers. Buyers averaged 29.5 years old and men made up 65% of those listed as the primary borrower.
The average loan amount was down slightly to $181,154 from February’s $185,566 and the average FICO score was 720, down from 723 in February and 724 in January.
Conventional loans remained the top choice of millennials (60%) while FHAs made up around a third and VAs were just 2% of the mortgages closed in March.
In line with recent trends, the time taken to close a mortgage for a millennial buyer was down, with an average of 43 days.
More market update:
Midwestern states are the most attractive options for young American homebuyers due to more affordable options.