It might not be Beyonce’s next big hit, but all the millennial single ladies were making their moves in mortgages in December, a new report shows.
According to the December Ellie Mae Millennial Tracker, 41 percent of single female primary homebuyers leveraged Federal Housing Administration (FHA) loans in the month, compared with 35 percent of married female primary homebuyers.
Thirty-eight percent of single male homebuyers utilized FHA loans compared with 28 percent of married men. Women, in total, selected FHA loans more than men during the month of December, with 39 percent of closed loans as FHAs compared with men, who utilized FHAs on 32 percent of closed loans.
“Last year we saw millennials begin to enter the housing market in force. While life events such as marriage or starting a family often influence borrowers’ decisions to purchase a home, others see homeownership as an opportunity to build equity,” Ellie Mae Executive Vice President of Corporate Strategy Joe Tyrrell said in a press release. “As a result, we saw many single female borrowers pursue homeownership in 2016. We’re on the cusp of a new era, with potential for an influx of millennials to begin exercising their purchase power.”
The report found that both male and female millennials were more likely to purchase homes in the middle of the country in December, with the top Metropolitan Statistical Areas (MSAs) by loans closed including Jasper, Ind.; Fort Leonard Wood, Mo.; Odessa, Texas; and Owensboro, Ky.
These MSAs all saw 59 percent or more of closed loans falling within the millennial category. Looking at 2016 as a whole, Owensboro, Ky., was listed as the top MSA for millennials, representing 49 percent of closed loans.
FICO scores on all closed loans by millennials in December averaged 724, on par with scores seen throughout 2016. The average FICO score for millennials refinancing in December was 748, while the average FICO score of those who closed on a purchase loan held steady from the previous month at 746.