Insight on the Millennial Home Buyer by Chrystal Caruthers

Millennial BuyerMillennials are the largest generation in America. They are a demographic bonanza to the real estate agents who know how to successfully market and convert these young adults. New research shows, they are buying houses in the most unlikely places.

Jonesboro, AR; Fargo, ND; Laredo, TX all top the list of places with the highest percentage of Millennial homebuyers, according to the Ellie Mae Millennial Tracker, a major mortgage industry software provider.

“The mortgage industry is poised to experience a monumental shift as more millennial homebuyers enter the market,” said Joe Tyrrell, executive vice president of corporate strategy at Ellie Mae. “There are roughly 87 million would-be homebuyers in the millennial generation and 91% of them say they intend to own a home one day.”


Single ladies are well represented in the March numbers. At least 31% were women with an average FICO score of 724.  Their average age, 30.

Men accounted for 66% of primary borrower closed loans in March. They had a 727 average FICO score and their average age was 30.

Still married couple made up 51% of millennial buyers in March, 48% single. The average age, 29.

The average loan amount was $188,502, with a 87% loan to-value-ratio, according to Ellie Mae. Most, 59%, were conventional. This says that young buyers are taking advantage of new loan programs that allow lower down payments without the penalty of mortgage insurance premiums.

Loan Type

Most millennials, 59%,  chose a conventional loan. With an average FICO of 749, these young people were able to close in 42 days, faster than average.

For those who went FHA, 38%, they had a 692 average FICO and managed to close in 43 days, still faster than market average of 44 days from contract to close.

Compared to the average American, millennials who buy homes tend to have higher credit scores. The average American has a 687 FICO score.

Still, lenders are opening the credit box, allowing more borrowers to qualify for loans. The average FICO score for conventional closed loans in March 2016 was 733, down slightly from 755 in March 2015, according to Ellie Mae.


Millennials are smart to lock in today’s low rates. In March, the average rate for all loans dropped to 4.12% from 4.22% in February for a 30-year fixed.

FHA borrowers really saw rate advantages at just 4.07% on average in March, down from 4.17% in February, according to the report.

For more detailed information regarding the mortgage process, please visit with one of my preferred vendors, Jim Francis, with First Centennial Mortgage