Average Credit Scores for Millennial Home Buyers Continue to Rise, June Ellie Mae Millennial Tracker™ Finds

FHA loans continue to help drive millennial homeownership

PLEASANTON, Calif. – August 8, 2016 – The average FICO score of millennial borrowers who closed on a home loan in June continued rising to an average of 723, according to the latest Ellie Mae Millennial Tracker™, an interactive online tool that provides access to up-to-date demographic data about this new generation of homebuyers. Comparatively, the average FICO score for millennial borrowers who closed loans in May was 722 and it was 721 in April. Ellie Mae® (NYSE:ELLI) is a leading provider of innovative on-demand software solutions and services for the residential mortgage industry.

For the third month in a row, FHA loans made up 37 percent of closed loans among millennial homebuyers. Holding steady from May, conventional loans represented 60 percent of total closed loans in June. The average time to close these loans increased to 45 days (up from 44 days in May).

“Economic uncertainty may be contributing to a general tightening of credit, which could explain why we are seeing a slight uptick in the average FICO scores for closed loans to millennials,” said Joe Tyrrell, executive vice president of corporate strategy at Ellie Mae. “We also continue to see FHA loans play a significant role in helping millennials make their homeownership dreams a reality. These types of loans make up 37 percent of all closed loans to this generation, compared to just 23 percent of closed loans across all generations of homebuyers.”

MILLENNIAL TRACKER HIGHLIGHTS FOR JUNE 2016
Loan Type Percentage of Loan Type Average Primary FICO Average Days to Close
Conventional 60% 748 44
FHA 37% 691 45

Women were once again listed as the primary borrower on 32 percent of closed loans, which has remained consistent since March. Among women who were listed as the primary borrower, 38 percent were married and 61 percent were single. This is unchanged from May.

Among male primary borrowers, 58 percent were listed as married and 42 percent single, a significant difference from women.

The average age for female primary borrowers was unchanged at 29.0 for the fourth consecutive month, while the average age for male primary borrowers increased slightly to 29.3.

The top Metropolitan Statistical Areas (MSAs) for millennials by percentage of mortgage loans closed included Midland, Mich. (61 percent), Owensboro, Ky. (58 percent) as well as Marion, Ohio and Aberdeen, S.D. (both 53 percent). Consistent with May data, when sorted by population, top MSAs included Minneapolis/St. Paul/Bloomington, Minn./Wis., St, Louis, Mo. and Baltimore/Columbia/Towson, Md.

The Ellie Mae Millennial Tracker mines data from a robust sampling of approximately 75 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.

The Ellie Mae Millennial Tracker is a supplement to Ellie Mae’s monthly Origination Insight Report, which focuses on loans that closed in a specific month and compares their characteristics to similar loans that closed three and six months earlier.

For more information on the Ellie Mae Millennial Tracker, visit http://elliemae.com/millennial-tracker

About the Ellie Mae Millennial Tracker

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 http://elliemae.com/resources/origination-insight-reports. News organizations have the right to reuse this data, provided that Ellie Mae, Inc. is credited as the source.

About Ellie Mae

Ellie Mae (NYSE:ELLI) is a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. Mortgage lenders of all sizes use Ellie Mae’s Encompass® all-in-one mortgage management solution, Mavent Compliance Service, and AllRegs research, reference and education resources to improve compliance, loan quality and efficiency across the entire mortgage lifecycle. Visit EllieMae.com or call (877) 355-4362 to learn more.

PRESS CONTACT

Erica Harvill
Ellie Mae, Inc.
(925) 227-5913
Erica.harvill@elliemae.com

Alexandra Gardell Kreuter
Allison+Partners
(646) 428-0618
EllieMae@allisonpr.com

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