According to a new report from Ellie Mae the average millennial borrower’s credit score varied greatly from city-to-city in May. The data was part of their latest Ellie Mae Millennial Tracker which measures closed loan application trends for U.S. homebuyers born between 1980-99. They report that the average FICO score for all closed loans to Millennials in May held steady for the third month in a row at 721, the lowest average for Millennial borrowers since April 2017.
“You would expect to see higher average FICO scores in the largest coastal metropolitan cities where loan amounts are higher, which we do see in areas such as San Francisco (757), Los Angeles (745), Boston (701) and Miami (722); however, there are some surprisingly high numbers in more rural areas, such as Mitchell, S.D where the average FICO for Millennials was 735 in May, higher than Boston or Miami,” said Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae. “Our Borrower Insights Survey recently found that many Millennials have a strong misperception about needing a perfect credit score to qualify for a home loan,” added Tyrrell.