The novel Coronavirus has come in a year when a good percentage of millennials are turning 30. What this means is that this demographic is stepping into its prime home-buying years in a scary situation. True that 2020 may be a headache-inducing year but looking at the big picture, “millennials may be poised to fuel a ‘roaring 20s’ of homeownership demand”, according to First American Financial’s Chief Economist, Mark Fleming. Fleming feels that all that the millennials need to do is make the right lifestyle choices.
Not all millennials are serious about buying homes but there is First American Financial’s data to prove that they are more in the game than Gen X or the Baby Boomers. In 2019, home demand coming from the millennials shot up by 3%, compared to Gen X’s 1.7% and Baby Boomers’ 0.8%. Fleming rounds it off beautifully with, “It appears millennial homeownership has been delayed, not denied.”
Lenders understand the risk involved in the current times and hence the average FICO score for millennials has come up to 742 in May, a hike of 21 points on the year-over-year chart, according to Ellie Mae’s Millennium Tracker. Average millennial borrowers are 32.3 years old. This again is a 2-year leap on the year-over-year chart.
“We’re in an era marked by economic volatility and this has caused lenders to tighten up their credit requirements, so it’s more important than ever for millennials looking to enter the market or refinance, that they’re taking good care of their finances and carefully managing their credit,” said Joe Tyrrell, COO at Ellie Mae.