ICE Mortgage Technology ™, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today shared that according to the ICE Mortgage Technology™ Millennial Tracker purchase activity among millennials increased in March, even as interest rates rose for the first time since October 2020.
Purchase activity represented 51% of loans closed by millennials in March – a notable increase from February’s 46% purchase share, but on par with January’s 53%. This influx in purchase activity occurred even as interest rates increased to 2.98%, up from 2.88% in February.
Prior to March, interest rates had been steadily decreasing since October 2020, when rates were at 3.03%. However, both younger millennials (those born between 1991 and 1999) and older millennials (those born between 1980 and 1990) experienced a slight rate increase in March. On average, rates for younger millennials increased from 2.85% in February to 2.96% in March, while rates for older millennials increased from 2.89% in February to 2.99% in March.
“Although rates are increasing, they are still hovering at record-low levels and will likely continue to be favorable for millennials looking to purchase or refinance a home for a number of months to come,” said Joe Tyrrell, President of ICE Mortgage Technology. “As we enter the summer homebuying season, we are seeing a traditional increase in purchase activity; however, inventory remains extremely tight, so millennials may face steep competition when looking to make a purchase.”
Average days to close a loan for millennial borrowers also dipped to 48 – the first time this average has been below 50 days since October 2020. This average is still a stark difference to March 2020 when it took just 39 days to close a loan.
The average age of borrowers in this generation also remained relatively high at 32.7 in March, down from 32.9 in February and January’s record high of 33. Average FICO scores also decreased across the board. In March average FICO scores for all millennial borrowers dropped to 739, down from 742 the month prior.
ICE Mortgage Technology Millennial Tracker – Older Millennials vs. Younger Millennials
|
|
Older Millennials |
Younger Millennials |
|
Closed Loans (Share) — All |
||
|
Refinance |
56% |
29% |
|
Purchase |
43% |
71% |
|
Loan Type - All |
||
|
FHA |
11% |
20% |
|
Conventional |
86% |
76% |
|
VA |
2% |
1% |
|
Other |
2% |
2% |
|
Time To Close (Days) — All |
||
|
All |
48 |
46 |
|
Refinance |
49 |
49 |
|
Purchase |
46 |
44 |
|
Average Interest Rates |
||
|
30 Year Note Rate — ALL |
2.99% |
2.96% |
|
30 Year Note Rate — FHA |
2.96% |
2.95% |
|
30 Year Note Rate — Conventional |
3.00% |
2.98% |
|
30 Year Note Rate — VA |
2.57% |
2.52% |
|
Average FICO |
747 |
729 |
The ICE Mortgage Technology 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% of all closed mortgages dating back to 2014 that were initiated on ICE Mortgage Technology’s Encompass® all-in-one mortgage management solution. Given the size of this sample, 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 http://icemortgagetechnology.com/millennial-tracker.
