Photo: Robert Clark
The country’s housing market heated up in July, with Millennial homebuyers fiercely competing for a dwindling supply of available homes. And with supply at abysmally low levels, lenders attempted to expedite the closing process.
However, the average number of days it took Millennial buyers to close loans could vary greatly state to state, according to the latest update to the Millennial Tracker released yesterday by Ellie Mae.
Nationally, the average time to close on all loans was 44 days in July. The average time to close a conventional loan remained unchanged from June at 43 days, while average closing time on FHA loans increased one day to 44 in July.
Those averages could be higher or lower depending on the state, for example — 60 days in New York, 40 days in California, and 46 days in Florida.
While the time to close in New York averaged 60 days, California averaged 37 days, and Florida averaged 45 days for Millennial borrowers, according to Millennial Tracker data.
Meantime, the average time to close a purchase loan for Millennial homebuyers held steady from the previous month at 42 days in July. Purchase loans accounted for 89 percent of overall Millennial borrowing activity for the month, while refinance loans rose 1 percentage point from June to 11 percent in July.
Among conventional loans, the most popular loan type with Millennials, refinances rose two points from June to 14 percent in July, while purchase loans fell two points to 85 percent — up from 77 percent in July 2016.
“Between the competitive housing market with limited inventory and the 30-year note rate at a 2017 low, some Millennial homeowners may be deciding to stay put and take advantage of the opportunity to refinance,” says Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae, in the report.
The average 30-year note rate for all closed loans decreased to 4.18 percent, a new low for this year. It was also below April’s annual high of 4.34 percent.
“But with many more Millennials interested in becoming homeowners for the first time, however, the purchase market is still very strong,” Tyrrell says.
Click here to read the entire report.