Refinancing on the Rise for Millennials as Interest Rates Decrease
Pleasanton, Calif. -- Over the last year, a dramatic drop in interest rates on 30-year notes has led to an active refinance market for millennials. According to the latest Ellie Mae Millennial Tracker, interest rates on all 30-year notes fell from 4.86% in June 2018 to 4.39% in June 2019. This figure marks the lowest average rate for borrowers of this generation since January 2018. Millennials were quick to take advantage of the lower rates and the share of refinances increased from 8% to 14% of all loans closed by members of this generation during the same period.
Among all 30-year loans closed by millennials, interest rates on VA loans had the largest year-over-year decrease, dropping more than half a point from 4.54% to 3.97%. Rates on FHA loans fell from 4.93% to 4.49% while rates on Conventional loans saw a near half-point reduction, from 4.84% to 4.35%.