ICE Mortgage Technology™, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today shared that according to the ICE Mortgage Technology™ Millennial Tracker, the percentage of purchase activity to total closed loans among millennials increased for the third consecutive month.
In May, 67% of loans closed by millennials on the Encompass® by ICE Mortgage Technology origination platform were for purchases, up from 61% in April 2021 and 51% in March 2021. Purchases accounted for 82% of loans closed by younger millennials (born between 1991 and 1999), up from 78% in April. For older millennials (millennials born between 1980 and 1990) purchases accounted for 60% of all closed loans, up from 53% in April.
Average FICO scores for millennial borrowers decreased for the fourth consecutive month. In May, average FICO scores for borrowers of this generation dipped to 732, down from 734 in April and 739 in March.
“Across the country, we’re seeing a strong and competitive purchase market, particularly among millennials,” said Joe Tyrrell, President of ICE Mortgage Technology. “With FICO score requirements loosening, millennials are taking advantage of the current environment to continue to jump into homeownership.”
May was also the second consecutive month in which purchase share for older millennials was larger than refinance share. In May, 60% of loans closed by older millennials were purchases while 38% were refinances. Older millennials have not closed more purchases than refinances since August 2020, when purchases by the cohort accounted for 52% of closed loans.
The average age of millennial borrowers continues to hover around 32 years. In May, the average borrower age was unchanged from April’s average of 32.4 years old.
Average days to close a loan for all millennial borrowers decreased to 46, down from 48 in April. Days to close a refinance loan decreased month-over-month from 52 in April to 50 in May, while days to close a purchase loan held steady at 44 days.
ICE Mortgage Technology Millennial Tracker – Older Millennials vs. Younger Millennials
Closed Loans (Share) — All
Loan Type - All
Time To Close (Days) — All
The ICE Mortgage Technology Millennial Tracker is an interactive online tool that provides access to up-to-date demographic data about this new generation of homebuyers. It mines data from a robust sampling of approximately 80% of all closed mortgages dating back to 2014 that were initiated on ICE Mortgage Technology’s Encompass® all-in-one mortgage management solution. Given the size of this sample, it is a strong proxy of millennial mortgage indicators across the country. Searches can be tailored by borrower geography, age, gender, marital status, FICO score and amortization type. For more information, visit http://icemortgagetechnology.com/millennial-tracker.
About the ICE Mortgage Technology Millennial Tracker
The ICE Mortgage Technology Millennial Tracker focuses on millennial mortgage applications during specific time periods. ICE Mortgage Technology defines millennials as applicants born between the years 1980 and 1999. New data is updated every month for two months prior. The Millennial Tracker is a subset of the Origination Insight Report, which details aggregated, anonymized data pulled from Encompass by ICE Mortgage Technology origination platform. Additional information regarding the Origination Insight Report can be found at http://icemortgagetechnology.com/resources/origination-insight-reports. News organizations have the right to reuse this data, provided that ICE Mortgage Technology, Inc. is credited as the source.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services across major asset classes that offer our customers access to mission-critical workflow tools that increase transparency and operational efficiencies. We operate exchanges, including the New York Stock Exchange, and clearing houses that help people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income data services and execution capabilities provide information, analytics and platforms that help our customers capitalize on opportunities and operate more efficiently. At ICE Mortgage Technology, we are transforming and digitizing the U.S. residential mortgage process, from consumer engagement through loan registration. Together, we transform, streamline and automate industries to connect our customers to opportunity.
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on February 4, 2021.
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SOURCE: Intercontinental Exchange