Millennial buyers are seeking out affordable markets with growing work opportunities and young men led closed loans in May.
Data from Ellie Mae shows that millennial buyers made up the largest share of mortgage borrowers in more affordable real estate markets, particularly in the Midwest.
“Our data shows that Millennials are continuing to establish roots where housing is more affordable and there are increasingly more jobs,” said Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae.
The markets with the highest percentages of loans being made to millennial borrowers were Hutchinson, Minn., Wahpeton, N.D.-Minn., Austin, Minn. and Williston, N.D. and Anniston-Oxford-Jacksonville, Ala.
“While overall, less than half of Millennials who closed loans in May were single, in markets like Hutchinson, Minn., the majority of borrowers were single men. This suggests millennials may be embracing homeownership in these areas for reasons other than what we have historically seen, which was family formation,” added Tyrrell.
Millennials continue to favor conventional mortgages, accounting for 62% of closed loans to the demographic. FHA loans made up 34%.
The time taken to close loans for younger buyers was up almost a week for FHA Refinance loans to 55 days (from 49 in April) but was 3 days quicker for VA loans (42 days).
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