WASHINGTON–New data show what Millennials who are homebuyers are paying in mortgage rates, as well as the amount they’re spending on new homes.
Ellie Mae reported the average rate on home loans obtained by Millennials fell to 3.763% in August, down from a high of 4.124% in February of this year. At the same time, the average loan amount to Millennial borrowers increased to $181,326, compared to July’s average of $180,413, Ellie Mae said. In addition, the average loan amount for both conventional and FHA loans also increased, to $203,884 and $172,667, respectively.
After increasing over recent few months, the average FICO score for Millennial borrowers remained stable at 725 in August, the data show. The percentage of millennial conventional loans in August continued to climb, resulting in 63% of total closed loans, up from 62% in July, according to Ellie Mae. Meanwhile, FHA loans continued to represent 35% of all closed loans in August, down from both June and May’s 37% share. The average debt-to-income ratio (DTI) rose to 24/36. Loan-to-value (LTV) increased to 88 in August.