With mortgage rates falling extremely quickly this past month, many borrowers are or already have joined the rat race to refinance their homes. But who makes up most of the crowd of refinancers? The answer to this question is the category of people known as millennials, or generation Y. In case you didn’t know, millennials are the group of people who were born between 1981 and 1996 who are commonly known as “echo boomers” because of the rise in birth rates in the later 1980s to the early 1990s.
In the refinancing department, millennials brought up applications to 116 percent compared to how many refinances there were last year, and the lenders are having a hard time keeping up with the movement.
One of the most popular lenders in North America, Quicken Loans, ended up seeing the best quarter for mortgage originations as it ended up originating over $11 billion of just mortgage volume alone, which was the highest for any month they’ve ever had. How did they do it?
Well, part of the reason was that home buying increased a little bit, but the majority of it ended up being refinancing, of which many millennials were the main cause of the increase. They saw that with the lower interest rates, they could indeed save more money in the future, as well as possibly do what some did and end up getting some cash back by locking those rates in. Many loan agencies are seeing an increase in loan applications and refinancing applications, and they’re trying to scramble to help their customers as much as possible, because the lower interest rates are actually earning them more, while helping millennials with their debts in the process.