Average interest rates on all 30-year notes to Millennial borrowers declined in April 2019, spurring an increase in refinance loans from members of the generation looking to take advantage of lower rates. According to the latest Ellie Mae Millennial Tracker, the average 30-year note rate declined to 4.61% in April, down from 4.75% in March 2019. With this drop, the percentage of refinance loans increased 4% month-over-month, from 11% in March to 15% in April, the highest share since February 2018.

Interest rates on Conventional, FHA and VA loans all decreased month-over-month for Millennials in April. Rates on Conventional loans decreased from 4.7% to 4.55%, FHA loans fell from 4.84% to 4.71% and VA loans dropped from 4.36% to 4.21%. Shares of refinances in the three loan categories increased from March to April. Conventional loans saw the biggest surge in share of refinances, jumping from 13% to 17%, while FHA refinances rose from 5% to 6% and VA refinances increased from 27% to 28%.

Time to close for all loans dropped to 39 days, the lowest figure since February 2015. The decrease in time to close was driven in large part by a six-day decrease in time to close for refinances, which, on average, closed faster than purchase loans for the first time since March 2016. Refinances closed in 36 days compared to 38 days for purchases.

“Interest rates continued to drop in April and Millennials jumped on the opportunity to refinance,” said Joe Tyrrell, executive vice president of strategy and technology at Ellie Mae. “The significant drop in time to close shows homebuyers were motivated to close refinances while rates were low, and that Millennials are showing increased maturity as a homeowning demographic. On top of external factors, an increased investment in technology by many lenders is creating a more efficient mortgage process.”

For all loans closed in April, 69% were Conventional and 26% were FHA, while VA and other loans accounted for 2% and 3% respectively. Conventional loans closed in 39 days compared to 40 days for FHA and 46 days for VA.

“Millennial homebuyers continue to show a strong preference for Conventional loans,” added Tyrrell. “There’s an opportunity to educate Millennials on alternate loan types, including FHA loans, which allow for smaller down payments, making homeownership more accessible. There is no one-type-fits-all loan, so it’s vital that all borrowers have a firm understanding of the various loan options available and communicate with their lender to make the decision that is right for them.”

The average FICO score for Millennial borrowers was 721 in April, up from 720 the previous month and average age dropped to 30.2, down slightly from 30.3 in March. For those refinancing a Conventional loan, the average FICO score was 745, the highest mark since December 2016, while the average scores for those refinancing FHA and VA loans were 670 and 718, respectively.

Ellie Mae® is the leading cloud-based platform provider for the mortgage finance industry.

The Ellie Mae Millennial Tracker is an interactive online tool that provides access to up-to-date demographic data about this new generation of homebuyers. It mines data from a robust sampling of approximately 80 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. For more information, visithttp://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 is the leading cloud-based platform provider for the mortgage finance industry. Ellie Mae’s technology solutions enable lenders to originate more loans, reduce origination costs, and shorten the time to close, all while ensuring the highest levels of compliance, quality and efficiency. Visit EllieMae.com or call 877.355.4362 to learn more.


Erica Harvill
Ellie Mae, Inc.
(925) 227-5913

Caitlin Coffee
(312) 635-8204