91% of closed loans to the generation in June were for purchase
The upward trend of mortgages originated for Millennials for home purchase continued in June.
Mortgage software firm Ellie Mae says that 91% of loans closed in the month for Millennials were for purchase, up from 90% in May and 89% in April.
The share has risen from 81% at the start of the year.
Millennials preference is for conforming loans (69% in June vs 68% in May). FHAs took a 27% share, down from 28% a month earlier but well above the 20% for borrowers of all ages.
"As it remains a competitive, purchase-centric market, we will continue to keep a close eye on the purchase trends amongst Millennials," said Joe Tyrrell, Ellie Mae's executive vice president of corporate strategy. "This new generation of homebuyers wants the capability of an on-demand mortgage, and we are working to provide borrowers a convenient and secure digital mortgage offering that makes the homebuying process a seamless experience."
Credit scores ticked higher
Average FICO scores for Millennial borrowers across all loan types were up slightly from 721 in the March-May period to 723 in June.
For purchases, the average FICO score was 746 for a conventional loan, 681 for an FHA loan and 744 for a VA loan.
In June, the hottest housing markets for Millennials were primarily in the Midwest. The top markets by percentage of Millennial loans closed included Clarksburg, W.Va. (65%), Watertown, S.D. (65%), Boone, Iowa (64%), and Dickinson, N.D. (61%).
