RISMedia's Real Estate Magazine

JUL 2019

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

Issue link: http://remag.rismedia.com/i/1132072

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Page 74 of 126

70 July 2019 RISMedia's REAL ESTATE From March to April 2019, the aver- age 30-year interest rate slid from 4.75 percent to 4.61 percent, Ellie Mae's report shows. Concurrently, conventional refinances rose 4 per- cent—to their highest in more than a year—and closings on refis short- ened to 36 days, a three-year low. "Interest rates continued to drop in April and millennials jumped on the opportunity to refinance," says Joe Tyrrell, executive vice president of Strategy and Technology at Ellie Mae. "The significant drop in time to close shows homebuyers were motivated to close refinances while rates were low, and that millennials are showing increased maturity as a home-owning demographic." According to Ellie Mae, both FHA and VA refinances rose 1 percent. For a conventional refinance, the average FICO score was 745; for an FHA refinance, the average FICO was 670; and for VA, 718. Of all millennial mortgages, 69 percent were conventional, 26 per - cent were FHA and 2 percent were VA. The average closing on conven- tional loans was 39 days, compared to 40 days for FHA loans and 46 days for VA loans. "Millennial homebuyers continue to show a strong preference for conventional loans," Tyrrell says. "There's an opportunity to educate millennials on alternate loan types, including FHA loans, which allow for smaller down payments, making homeownership more accessible. There is no one-type-fits-all loan, so it's vital that all borrowers have a firm understanding of the various loan options available and commu - nicate with their lender to make the decision that is right for them." RE Source: Ellie Mae Millennial Mortgages: With Lower Rates, 5HÀQDQFHV5LVH by RISMedia Staff W ith average interest rates shrinking, millennials are moving to refinance, according to the recently released Ellie Mae Millennial Tracker.

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