Data Facts Lending Solutions Blog

Important Digital Mortgage Statistics Mortgage Pros Should Know

by Susan McCullah

Apr 30, 2019 9:42:59 AM

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Digital mortgage blogDigital mortgage discussions are everywhere! Blogs, news, and trade shows can't stop talking about them and their impact on the current and future mortgage industry. 

What are consumers saying and feeling about digital mortgages? What are the benefits and the drawbacks? We've compiled a list of the best, most up-to-date statistics available to shed more light on this important mortgage trend. 

STATISTICS TO KNOW

Millennials account for 36% of homebuyers in the market. 

More than 50% of all loan applications in the past two years included some online or mobile component.Blog word graphic

67% of those with an existing home loan would feel comfortable completing a home loan application on a laptop or desktop computer, and 29% would be comfortable using a mobile device.

More than 30% of borrowers reported not comparison shopping for their mortgage.90% of Millennials that are currently renting plan on buying a home in the future. 

Reasons Mill delay buying house

24% of the Millennials surveyed said that a lack of a mobile app was seen as a barrier to communicating with financial institutions.

57% of millennials stated that if they were applying for a mortgage today, they would choose a digital channel.

92% of recent mortgage borrowers did online research before even speaking to a lender. Just 57% of borrowers did the same 5-10 years ago.

  • 72% of all borrowers researched where to find the best rate
  • 59% researched their loan options and how much cash they qualified for
  • 49% researched lender trust 

78% of homes purchased in 2018 were bought with a mortgage. 

In a study of 10 million mortgage applications, credit history and debt were the most significant barriers to home application approval, which were each responsible for 26% of denials.

Online options today‚Äôs borrowers are using?

  • 51% uploaded bank statements
  • 48% uploaded some amount of application data
  • 43% completed their entire loan application online

74% of all borrowers used an online portal to work with their lender.Those borrowers were 41% more likely to rate their overall loan experience either excellent or above average.

Graph from Ellie Mae

53% of Americans have the necessary income to qualify for a median-priced home in their state.

In 2018 Q3, the average sales price of a home was $390,200.

29% of borrowers named "speed of the process" as the most important factor while applying for a loan online. 

28% of borrowers names "security" as the most important factor while applying for a loan online. 

GEN Z (1995-2015)

82 percent of Gen Zers who were renting identified home ownership as the most important component of the American Dream.

60% of older GEN Z's (18-23) say they want to buy a home in the next 5 years. 

The majority of Gen Z report they will not use an app or website that is hard to navigate or slow to load.

Is your company on track to provide a seamless digital mortgage experience for your current and future customers? Understanding the new road to closing is essential in keeping and gaining market share through efficient processes!

References:

https://www.elliemae.com/engage/consumer-engagement-suite-ebook

https://lendedu.com/blog/millennials-credit-scores/

https://www.nar.realtor/sites/default/files/reports/2017/2017-home-buyer-and-seller-generational-trends-03-07-2017.pdf

https://www.supermoney.com/2018/08/mortgage-industry-study/

https://themortgagereports.com/42041/mortgage-borrowers-report-increasingly-digital-experiences

https://themreport.com/daily-dose/01-11-2019/the-mortgage-playbook

https://static.elliemae.com/landing-pages/2018-digital-mortgage-ebook/pdf/elliemae-digital-mortgage-ebook.pdf

Topics: mortgage news, Mortgage Lending, mortgage trends, mortgage lending services, mortgage education, digital mortgage

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