Bay City, Mich., Cheyenne, Wyo., and Norwalk, Ohio, top the list of markets in which single millennial homebuyers were more likely to close a mortgage loan in July than married homebuyers, according to the latest Ellie Mae Millennial Tracker. More than half of single millennial homebuyers last month were men (53 percent), compared with 40 percent who were women, the report said.
Single homebuyers borrowed $172,904, on average, and had an average FICO score of 720. The highest percentage of closed loans by single millennial borrowers in July were Bay City, Mich. (82 percent; Cheyenne, Wyo. (82 percent); Norwalk, Ohio (80 percent); Batavia, N.Y. (77 percent); New Philadelphia-Dover, Ohio (76 percent); Pocatello, Idaho (76 percent); Williston, N.D. (76 percent); Columbus, Ind. (72 percent); College Station – Bryan, Texas (71 percent); Ames, Iowa (71 percent); Minot, N.D. (71 percent); Faribault-Northfield, Minn. (70 percent) and Williston, N.D. (76 percent).
“Millennials are purchasing more homes than any other generation, and we’re seeing many single borrowers take advantage of opportunities now rather than waiting to purchase a home around a big life event such as getting married or starting a family,” Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae, said in the report. “We’re also seeing millennials get more for their money by purchasing homes in affordable markets.”
By comparison, Aberdeen, S.D., Indiana, Pa. and Odessa, Texas, were the top markets in which married millennial homebuyers were more likely to close a mortgage loan in July than their single counterparts. Sixty-seven percent of married millennial primary borrowers last month were men, compared with 25 percent who were women. Married homebuyers borrowed $277,651, on average, and had an average FICO score of 729, the report went on to say.
The highest percentage of closed loans by married millennial borrowers in July were Aberdeen, S.D. (76 percent); Indiana, Pa. (71 percent); Odessa, Texas (69 percent); Charleston, W.Va. (59 percent); Austin, Minn. (59 percent); Midland, Texas (58 percent); Bay City, Mich. (54 percent); Sioux Falls, S.D. (53 percent); Mankato-North Mankato, Minn. (52 percent); Findlay, Ohio (52 percent); Winona, Minn. (52 percent) and Anchorage, Alaska (52 percent).
Additional findings from the July 2018 Ellie Mae Millennial Tracker includes:
- Purchases made up 90 percent of all closed loans to millennials, slightly down from 91 percent in June. Eight percent of home loans were for refinances, holding steady from the month prior.
- Conventional loans remained the most popular among millennial borrowers at 68 percent of total closed loans in July. FHA loans accounted for 27 percent of closed loans. VA loans were just 2 percent of all closed loans.
- Millennial males (both single and married) were listed as the primary borrower on 61 percent of closed loans in July, while females were listed on 32 percent. By comparison, in July 2017, males were listed as the primary borrower on 64 percent of closed loans and females were listed on 33 percent.
- The average age of all millennial borrowers was 29.8, essentially flat from 29.9 in June.