Millennials are the current and next generation of home buyers. If you are a millennial (generally people currently in their 20’s or early 30’s,), you probably do things differently than your parents. Growing up with iPhones, quick internet and very technological lives means that even a home search is different. This can be a challenge for agents who have been selling for years. Ellie Mae Millennial Tracker for June helps show what the average millennial home buyers look like.
It found that the average FICO score of millennial borrowers is rising. It was 722 in May, 721 in April, and rose to 723 in June. Ellie Mae also tracked the types of loans that millennials use. They found that 37 percent were FHA loans, and 60 percent were conventional.
“Economic uncertainty may be contributing to a general tightening of credit, which could explain why we are seeing a slight uptick in the average FICO scores for closed loans to millennials,” says Joe Tyrrell, executive vice president of corporate strategy at Ellie Mae.
“We also continue to see FHA loans play a significant role in helping millennials make their homeownership dreams a reality,” Tyrrell adds. “These types of loans make up 37 percent of all closed loans to this generation, compared to just 23 percent of closed loans across all generations of homebuyers.”
Who was taking out the loans? On 32 percent of loans, women were the primary borrowers. The average age of female borrowers was 29, and 29.3 for males.
Whether you are a millennial home buyer, any home seller, or a real estate agent, it is helpful to understand trends of millennial home buyers. They are a very important generation of home buyers, and one that redefines some traditional expectations. If you’re a home buyer, of any age, contact one of our expert RE/MAX Paradise agents today. We know how to help all types of buyers in Miami!