Evermobile Millennial Housing Demand Unchecked By Rising Mortgage Rates

Evermobile Millennial Housing Demand Unchecked By Rising Mortgage Rates

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The housing demand among the ever-mobile Millennial generation went unchecked in August despite rising mortgage rates, according to the Ellie Mae Millennial Tracker.

In fact, despite Millennials’ average 30-year note increasing to 4.211%, up from 3.706% last year, their loan amounts also increased in August to $185,919. This is up from $184,113 in August 2016. Further, the generation is showing a growing willingness to shun the big cities and settle down in once-sleepy towns. 

“Average loan amounts in August of this year were slightly higher than last year, despite higher interest rates,” said Joe Tyrrell, Ellie Mae executive vice president of corporate strategy. “As tends to happen with tight inventories, this is a seller’s market, and many of today’s homebuyers may be faced with paying a premium for the same home they might have bought for less last year.”

“For those who are committed to buying a home, though, slight increases in competition, costs or interest rates will likely not deter them,” Tyrrell said.

Conventional loans held steady at 64%, and the share of FHA mortgages stayed at 32%, the same market shares they have held since June.

So what exactly did the average Millennial homebuyer look like in August? Ellie Mae shows us they were just over 29 years old, and took out a conventional loan of $185,919 on a home with an appraised value of $223,882. Their FICO score was 724, and, as seen above, their 30-year mortgage note rate was 4.2%.

These borrowers, of whom 52% were married, typically closed out their home-buying process in 44 days.

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Phone: 763-416-1279
Dated: October 10th 2017
Views: 48
About Kelly: I absolutely LOVE the Real Estate business! I’ve been drawn to Real Estate for years – it combin...

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