According to the latest Ellie Mae Millennial Tracker, the average interest rate on all 30-year loans closed by millennials in January dropped to 3.94%, down slightly from 3.95% in December. This decline marks a deviation from the months prior, as average rates rose month-over-month in both November and December.

January also saw refinance share – the percent of all loans closed during the month that were refinances – among millennials jump up after consecutive months of decline. During the month, 31% of loans closed by millennials were refinances, up from 27% in December.

For Conventional loans, which represented 71% of total loans closed in January by this demographic, refinance share increased from 33% to 38% month-over-month as average rates for this loan type dipped slightly.

“January was a favorable market for both millennial homebuyers and homeowners looking to capitalize on lower interest rates by refinancing their mortgages,” said Joe Tyrrell, chief operating officer at Ellie Mae. “With the purchase power of millennials increasing and inventory still tight across the country, we expect millennials to continue to search outside of major metropolitan areas, where there is more inventory, when making their homebuying decisions.”

Starting with 2020 data, the Ellie Mae Millennial Tracker will now divide millennials into two groups: older millennials – borrowers between 30 and 40 years old, and younger millennials – borrowers between 21 and 29 years old.

The January data shows that refinance share among older millennials was 38% compared to 17% for younger millennials. Younger millennials received an average interest rate of 3.9%, lower than older millennials at 3.95% as millennials between 21 and 29 were more likely to take advantage of FHA loans. According to the January data, 31% of all loans closed by this group were FHA loans, 11 percentage points higher than older millennials.

“Millennials are expected to fuel the housing market in 2020 and it’s vital that lenders understand how to market to and work with this demographic,” said Tyrrell. “We know that millennials prefer working with lenders who provide a blend of high-touch human interaction and automated processes, but as this demographic grows and ages up, the most successful lenders will be those that understand the nuances between older and younger millennials and adjust their strategies based on this insight.”

Ellie Mae® is the leading cloud-based loan origination platform provider for the mortgage 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, visit

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 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 or call 877.355.4362 to learn more.


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

Alexandra Gardell Kreuter
(646) 428-0618