Press Release

Millennial Purchase Market Continues to Heat Up Amid Peak Homebuying Season, According to Ellie Mae Millennial Tracker

PLEASANTON, Calif. – Sept. 2, 2020 – Despite tight housing inventory across the country, Millennial purchase activity continued to rise in July, according to the latest Ellie Mae Millennial Tracker. Share of all purchase loans closed to millennials reached 61% for the month, up five percentage points from June. This increase marks the highest purchase share for the generation since March 2020. 

During July, millennial purchasing power grew as the average interest rate for all loans closed by this cohort fell to 3.25%, the lowest it’s been since Ellie Mae began tracking this data. The previous low occurred just one month prior, when the average rate dropped to 3.36%. 

Younger millennials, those born from 1991-1999, were the sub-group responsible for the most closed purchase home loans for the month. 81% of loans closed by younger millennials were for purchases, while 19% were for refinances. This was a stark contrast compared to loans closed by older millennials (30-40 years-old), many of whom already own homes. Fifty-three percent of their loans were for purchases and 46% were for refinances. 

Younger millennials also took advantage of FHA loans in July. Ninety-seven percent of closed FHA loans for purchases were for younger millennials, the highest percentage since Ellie Mae started tracking this data in 2016. In comparison, 92% of closed FHA loans by older millennials were for purchases. 

Younger millennials also closed loans with a slightly lower FICO score average of 728 in July, compared to older millennials with an average FICO score of 747. Average FICO score for all closed loans across the generation was 739. 

“We’re seeing a new wave of younger millennial home buyers flood the market as we enter peak homebuying season,” said Ellie Mae Chief Operating Officer, Joe Tyrrell. “With interest rates at historic lows, now is the perfect time for younger millennials to purchase a home and start building equity.” 

“To encourage homeownership among the millennial generation, especially younger millennials, it is imperative lenders educate these borrowers on all loan types, including affordable options with less stringent credit requirements such as FHA loans,” added Tyrrell. 

Ellie Mae Millennial Tracker – Older Millennials vs. younger Millennials

Older Millennials Younger Millennials
Closed Loans (Share) — All
Refinance 46% 19%
Purchase 53% 81%
Loan Type — All
FHA 14% 25%
Conventional 83% 71%
VA 2% 1%
Other 2% 3%
Time To Close (Days) - All
All 46 43
Refinance 52 52
Purchase 41 40
Average Interest Rates
30 Year Note Rate — ALL 3.24% 3.24%
30 Year Note Rate — FHA 3.26% 3.23%
30 Year Note Rate — Conventional 3.23% 3.22%
30 Year Note Rate — VA2.87% 2.78%

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% 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

Caitlin Coffee
(312) 635-8204

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© 2020 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, Mavent®, Velocify®, the Ellie Mae logo and other trademarks or service marks of Ellie Mae, Inc. appearing herein are the property of Ellie Mae, Inc. or its subsidiaries. All rights reserved. Other company and product names may be trademarks or copyrights of their respective owners.

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