Refinances made up a 34 percent of all Millennial closed loans in October 2019. That’s an all-time high according to mortgage tech provider Ellie Mae.
And it all comes down to low interest rates–rates on 30-year loans were under 4 percent in October. The average interest rate was 3.826 percent. Declining rates have increased Millennials’ awareness of refinancing and more homeowners in this demographic are taking advantage of refinancing their mortgages.
When it comes to refinancing in today’s refi boom, millennials can expect longer closing times. According to data, it took 44 days to close a refinance loan in October — up two days from September. FHA refinancing took the longest time to close at 51 days, while conventional refis closed fastest at forty four days.
For reference, 90 percent of all Millennial refinances in October were conventional loans. Millennial refinances comprised 42% of VA loans and 41% of conventional loans The average Millennial refinancer was 32.5 years old, had a 751 credit score, was male and married. Their average appraised home value was $330,371.
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