According to the latest Ellie Mae Millennial Tracker, 45 percent of all loans closed by millennial borrowers in November were refinances. That is up three percentage points from the month prior.
The average interest rates on 30-year loans dipped for the eighth consecutive month in November down to 2.97 percent. The report says the dip in interest rates spurred the increased refinancing activity.
“With interest rates reaching historic lows, millennials have refinanced to take advantage of a significant savings opportunity they will see play out over the long-term,” ICE Mortgage Technology President Joe Tyrrell said.
The tracker splits millennials into two groups: 21-29 and 30-40. For older millennials, refinance share reached 52 percent in November, more than double the refinance share of younger millennials at 24 percent.
“Lenders are continuing to manage the refinance pipeline by investing in virtual solutions such as eClosing, online borrower portals, and virtual verifications, and turning this boom in loan volume into business growth,” Tyrrell said.