Ellie Mae has just introduced a new online tool that tracks housing loan trends among the nation’s millennials, providing more insights into what is fast becoming an important segment of home buyers.
Ellie Mae’s Millennial Tracker tool offers up a ton of demographic data about this younger generation. For example, users can search according to borrower’s age, gender, geography, FICO score, amortization type and marital status. The tracker takes its data from around 66 percent of all mortgages closed since 2014, meaning it represents a huge portion of the market.
Joe Tyrrell, executive vice president of corporate strategy at Ellie Mae, said the tracker comes about as the mortgage industry is positioning itself for a huge shift as millenials start to enter the housing market in greater numbers.
“There are roughly 87 million would-be homebuyers in the millennial generation and 91 percent of them say they intend to own a home one day,” Tyrrell said. “Lenders must prepare today to meet their needs.”
The Millennial Tracker offers some interesting insights already, showing that 37 percent of all mortgages granted to millenials came from the FHA. The average time to close was 44 days.
It also shows that conventional loans amount to 60 percent of all loans issued to millenials since 2014, with an average closing time of 43 days. Of these applications, 31 percent listed a female as the primary borrower. Those females had an average FICO score of 724, with the average age being just 30 years old. Meanwhile, 66 percent of men were listed as the primary borrower on closed loans with an average age of 29 years and an average FICO score of 727.