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Press Release

Days to Close Millennial Home Loans Varied Significantly From State to State in July According to July Ellie Mae Millennial Tracker™

PLEASANTON, Calif. – September 6, 2017 – While homebuyers compete for limited inventory and mortgage lenders strive to close home loans faster than ever before, data shows average days to close loans vary widely across the U.S. In July, average days to close a loan for Millennial borrowers fluctuated from state to state, with New York averaging 60 days to close, California 37 days, Illinois 39 days and Florida 45 days, according to the latest Ellie Mae Millennial Tracker™ released today by Ellie Mae® (NYSE:ELLI). The month prior, average days to close in these states were either the same or higher, with New York at 60, California 40, Illinois 41 and Florida 46.

Across the country, the average time to close all loans in July was 44 days. Average time to close a Conventional loan held steady at 43 days, while average time to close an FHA loan increased by one day to 44. Time to close VA loans decreased from 46 days to 42 days. The most significant month-to-month change was for FHA refinance loans, which jumped from 45 days to close in June to 50 days to close in July, on average.

In regard to loan purpose, the average time to close a purchase loan for Millennials held steady at 42 days from June to July. Surprisingly, average days to close refinance loans decreased from an average of 48 days in June to 46 in July, despite a slight increase in refinance activity.

Overall, refinances edged up to 11 percent of all closed loans to Millennial borrowers in July, from 10 percent in June. Comparatively, purchases made up 89 percent of all closed loans to the generation in July, a one percent decrease from the month prior. Among Conventional loans, the most popular loan product for Millennial borrowers, refinances ticked up two points to 14 percent, while purchases dipped by two points to 85 percent.

“Between the competitive housing market with limited inventory and the 30-year note rate at a 2017 low, some Millennial homeowners may be deciding to stay put and take advantage of the opportunity to refinance,” said Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae. “With many more Millennials interested in becoming homeowners for the first time, however, the purchase market is still very strong.”

Other key findings from the July 2017 Ellie Mae Millennial Tracker included:

  • The average 30-year note rate for all closed loans hit a new low for the year, declining to 4.18 percent, down from April’s annual high of 4.34 percent
  • Conventional loans to Millennials accounted for 64 percent of all Millennial loans in July, compared to FHA loans which represented 32 percent and VA loans which held at 2 percent
  • Among VA loans closed by Millennial borrowers, purchases have dramatically increased from 69 percent of all Millennial VA loans in July 2016, to 81 percent in July 2017
  • The percentage of Conventional purchase loans represented 85 percent of all Conventional loans to Millennials in July, up from 77 percent this time last year
  • Across the nation in July, single men, on average took out loans for $181,568, while single women averaged $170,301

FICO scores across all loan types also continued to slowly rise in July to an average of 724, up from 723 in June, yet one point lower than last July’s average of 725. For purchases, the average FICO score was 748 for a conventional loan, 688 for an FHA loan and 742 for a VA loan.

Ellie Mae® (NYSE:ELLI) 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 75 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 http://elliemae.com/millennial-tracker

About the 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 http://elliemae.com/resources/origination-insight-reports. News organizations have the right to reuse this data, provided that Ellie Mae, Inc. is credited as the source.

About Ellie Mae

Ellie Mae (NYSE:ELLI) 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 EllieMae.com or call 877.355.4362 to learn more.


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

Alexandra Gardell Kreuter
(646) 428-0618

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© 2017 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, 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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