Millennial homebuyers opted for conventional loans in August according to a new report.
The Ellie Mae Millennial Tracker reveals that 69% of loans closed by millennials were conventional, the highest share since February 2015. In August 2017 the share was 64%.
FHA loans slipped back from a 32% share in August 2017 to 27%, with VAs unchanged at 2%, and 3% undisclosed.
Purchase loans increased to 90% of all closed loans by millennials, up from 87% a year earlier, and conventional purchase loans made up 89% of all closed loans, up from 84%.
Nine percent of all home loans to Millennial borrowers were for refinances, as were 10% of conventional loans, both up one percentage point from the month prior.
"As the industry continues to understand millennials and the new paradigms that a gig economy brings, we are seeing conventional loan products that are able to meet the needs of this important homebuying generation," said Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae.
More millennial stats
Millennial males were listed as the primary borrower on 61% of closed loans in August with women making up 32% and the remainder unspecified.
The average Millennial FICO score was 722, down from 723 in July and 724 in August 2017.