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10 | M R EP O RT MDWELL Refinancing: Older vs. Younger Millennials The refinance share of millennial mortgage activity has increased. M illennials are refi- nancing their mort- gages in growing numbers, according to data released by Ellie Mae. Refinance activity accounted for 45% of all loans closed by millennial borrowers in November 2020, as determined by the latest Ellie Mae Millennial Tracker report. This represents a 3% increase from October and the highest percentage since May 2020. On a year-over-year measurement, the refinance share of millennial mortgage activity was up by 14%. This upward motion coincided with the downward spiral of the average interest rate on all 30-year loans, which fell for the eighth consecutive month down to 2.97%, the lowest level since Ellie Mae began tracking the data in January 2016. As more millennials refinanced their mortgages to lower their monthly payments, loan volume increased. This resulted in the average time to close a refinanced loan increasing by two days month over month, from 58 days to 60 days. Overall, the average time closing for all loan types increased from 49 days in October to 52 days in November. The Ellie Mae Millennial Tracker divides millennials into two age groups: older millennials spanning 30 to 40 years old and younger millennials between 21 and 29 years old. For older millennials, their refinance share reached 52% in November, which more than double the refinance share of younger millennials at 24%. Both millennial subgroups secured historically low average interest rates of 2.97% for older millennials and 2.94% for their younger counterparts. On the purchase side of the business, Ellie Mae reported conventional loans accounted for 85% of the older millennials' product choice and 74% of the younger millennials' choice. Federal Housing Administration loans were the second most popular, accounting for 12% and 23% shares among older and younger millennials, respectively. CLOSED LOANS (SHARE) — ALL Refinance 52% 24% Purchase 47% 75% LOAN TYPE — ALL FHA 12% 23% Conventional 85% 74% VA 2% 1% Other 1% 2% TIME TO CLOSE (DAYS) — ALL All 53 48 Refinance 59 59 Purchase 45 45 AVERAGE INTEREST RATES 30 Year Note Rate — ALL 2.97% 2.94% 30 Year Note Rate — FHA 2.96% 2.95% 30 Year Note Rate — Conventional 2.97% 2.92% 30 Year Note Rate — VA 2.55% 2.56% AVERAGE FICO 760 729 Older Millennials vs. Younger Millennials OLDER YOUNGER Source: Ellie Mae Millennial Tracker