Polygon Research Blog

ASK HMDAVision:
What are the buying patterns of young mortgage applicants?
September 16, 2019
HMDAVision is based on the full HMDA datasets from the past 5 years - over 100 data fields for over 70 million transactions. Because it is based on true microdata, HMDAVision subscribers can find very specific answers to their questions about mortgage patterns. Here are 6 such answers to today's question:

Volume and Geography of Mortgage Applications


In 2018, 1 in 5 mortgage applications, or 2,681,597 total, belonged to applicants who were 34 years old or younger. The darker colors in the map below show higher volumes of more mortgage applications in that location:

2018 Map of Mortgage Applications Young Buyers
Buying patterns of young mortgage applicants. Source: HMDAVision.
Based on 2018 Applications reported by covered lending institutions (excluding PR and the islands) and loans that were not primarily for business or commercial
Successful Applications: Originations

Of the 2.68 million applications by 34-year-olds or younger, 64.5% or 1.73 million were approved. The total mortgage market for this age category was $387.3 Billion.

2018 Map of Mortgage Applications Young Buyers
Pull-through of mortgage applications by applicants Age 34 or younger. Source: HMDAVision.
Based on 2018 Applications reported by covered lending institutions (excluding PR and the islands) and loans that were not primarily for business or commercial.
Main Driver of Home Purchases: Young Applicants

Applicants 34 years old or younger accounted for 36.6% of all home purchase mortgage loans in 2018.

2018 Map of Mortgage Applications Young Buyers
2018 Home Purchase Originations by Age. Source: HMDAVision.
Based on 2018 Applications reported by covered lending institutions (excluding PR and the islands) and loans that were not primarily for business or commercial.
Unsuccessful Applications: Denials

The primary reason for denying applications for this age group was Credit History.

2018 Map of Mortgage Applications Young Buyers
Reasons for denials of mortgage applications by applicants Age 34 or younger. Source: HMDAVision.
Based on 2018 Applications reported by covered lending institutions (excluding PR and the islands) and loans that were not primarily for business or commercial.
Location, location, location: Top MSA

New York-Newark-Jersey City-NY-NJ-PA MSA is the largest mortgage market for borrowers 34-years-old or younger. In 2018, 59,039 mortgage loans, or $21.5 Billion in mortgage loan volume, were originated to borrowers 34 years old or younger in New York.

2018 Map of Mortgage Applications Young Buyers
Top MSA for mortgage originations for applicants Age 34 or younger. Source: HMDAVision.
Based on 2018 Applications reported by covered lending institutions (excluding PR and the islands) and loans that were not primarily for business or commercial.
Top Lenders In New York City by Lender Type

The top 50 lenders to young people 34 years or younger in NYC control 73% of the market based on number of mortgage loans originated. The top 5 lenders are Chase, Wells Fargo, Quicken, Bank of America and United Shore.

2018 Map of Mortgage Applications Young Buyers
2018 Top Lenders for borrowers age 34 or younger. Source: HMDAVision.
Based on 2018 Applications reported by covered lending institutions (excluding PR and the islands) and loans that were not primarily for business or commercial.
Stay tuned for more entries in our series: Ask HMDAVision!
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