Credit scores among millennial homebuyers declined slightly from November 2016 to November 2017, according to Ellie Mae’s most recent Millennial Tracker report. The decrease in average credit scores of closed loans to millennials was most apparent for FHA and VA loans.
The Millennial Tracker found that in November 2016, the average FICO score for all closed loans to millennials was 725, which dipped to 723 a year later. Ellie Mae’s latest Origination Insight Report revealed an average FICO score of 728 for all borrowers who closed loans in November 2016, which by November 2017 had decreased to 722.
In November 2016, the average FICO score for a closed FHA refinance loan borrowed by a millennial was 678, which dropped to 669 by November 2017, according to Ellie Mae.
The average FICO score on closed VA refinance loans fell from 725 to 710 between November 2016 and November 2017.
“With the average credit score dipping, lenders are extending credit to borrowers who may have had no previous access to the housing market,” said Joe Tyrrell, executive vice president of corporate strategy at Ellie Mae. “While these scores are still significantly above the levels seen a few years ago, it is encouraging to see increased accessibility, especially as the millennial population continues to pursue home ownership.”
|Millennial Tracker FICO Score Highlights|
|Average FICO Score||Nov-16||Nov-17|
|All closed loans||725||723|