After climbing rapidly on Monday and Tuesday, the average rate on 30-year and 15-year fixed mortgages inched up one basis point, and the 5/1 ARM remained unchanged, according to a NerdWallet survey of daily mortgage rates published by national lenders Friday morning.
Mortgage rates aren’t the only thing that’s settling down. So are millennials. And they’re clustering in parts of the country that you might not expect. According to mortgage technology provider Ellie Mae, from June through August, millennials made up more than half of the mortgage borrowers in six metro areas this summer:
- Athens, Ohio: 59%
- Aberdeen, South Dakota: 56%
- Williston, North Dakota: 55%
- Lima, Ohio: 55%
- Dickinson, North Dakota: 54%
- Odessa, Texas: 51%
Those are relatively small metro areas, where a few millennial home buyers can raise the overall percentage. Among the country’s larger metro areas, St. Louis had the highest percentage of millennial borrowers this summer, at 38%. Minneapolis-St. Paul followed at 37%, and Baltimore and Philadelphia stood at 36%.
The major metro area with the lowest percentage of millennial mortgages was Los Angeles, where 20% of borrowers were born between 1980 and 1999, according to Ellie Mae. Even superexpensive San Francisco had a higher rate of millennial mortgages, at 23%. New York’s rate was 29% and Chicago’s was 33%.
For those who want to buy homes in expensive cities, the best bet might be to get a mortgage insured by the Federal Housing Administration. Borrowers with good credit can get FHA-insured loans with down payments of 3.5%. Here’s what you need to know about FHA loans.
MORTGAGE RATES TODAY, FRIDAY, SEPT. 15:
NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.
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