5 Reasons Why Millennials Buy a Home [INFOGRAPHIC]

5 Reasons Why Millennials Buy a Home [INFOGRAPHIC] | Simplifying The Market

5 Reasons Why Millennials Buy a Home [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • “The majority of millennials said they consider owning a home more sensible than renting for both financial and lifestyle reasons — including control of living space, flexibility in future decisions, privacy and security, and living in a nice home.”
  • The top reason millennials choose to buy is to have control over their living space, at 93%.
  • Many millennials who rent a home or apartment prior to buying their own homes dream of the day when they will be able to paint the walls whatever color they’d like or renovate an outdated part of their living space.

5 Reasons Why Millennials Buy a Home [INFOGRAPHIC]
5 Reasons Why Millennials Buy a Home [INFOGRAPHIC]

Lenders Manage Tiny Profits in 2018 Despite Rate Hikes, Inventories; Europe Helping Bonds; Don't Count Chickens

Despite their fourth quarter loss reported last month, independent mortgage banks and bank mortgage subsidiaries still managed, albeit barely, to stay in the black last year. The Mortgage Bankers Association (MBA) said that banks responding to its survey made an average profit of $367 on each loan they originated last year, down from $711 per loan in 2017. They lost an average of $200 per loan in the last quarter of the year, only the third quarterly loss since MBA began collecting the data in 2008. “Despite a healthy economy in 2018, the mortgage market suffered, as rate hikes hurt refinancing volume and low housing inventories priced some potential homebuyers out of the purchase market,” said Marina Walsh, MBA’s Vice President of Industry Analysis. “For mortgage companies, there was the perfect
Lenders Manage Tiny Profits in 2018 Despite Rate Hikes, Inventories; Europe Helping Bonds; Don't Count Chickens
Lenders Manage Tiny Profits in 2018 Despite Rate Hikes, Inventories; Europe Helping Bonds; Don't Count Chickens

BB&T CEO Kelly King: People tend to seek loans when a slowdown is imminent

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Kelly King, chairman and CEO of BB&T, joins "The Exchange" to discuss the concerns of an imminent economic slowdown. He says that he doesn't believe a recession is on the horizon.

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BB&T CEO Kelly King: People tend to seek loans when a slowdown is imminent
BB&T CEO Kelly King: People tend to seek loans when a slowdown is imminent

Markets will continue to tick higher unless something catastrophic happens, says expert

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Kate Moore, BlackRock chief equity strategist, and Kourtney Gibson, president of Loop Capital Markets, join 'Fast Money Halftime Report' team to discuss if the market can continue on to new highs and the Zoom and Pinterest IPOs.

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Markets will continue to tick higher unless something catastrophic happens, says expert
Markets will continue to tick higher unless something catastrophic happens, says expert

Jobless claims decline for fifth straight week

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CNBC's Rick Santelli and Steve Liesman break down the March 2019 retail sales numbers as well as the latest jobless claims data. Also at the table is Joe Lavorgna, chief economist at Natixis.

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Jobless claims decline for fifth straight week
Jobless claims decline for fifth straight week

Buyer Demand Surging as Spring Market Begins

Last fall, some predicted that the 2019 residential real estate market would be a disaster. There was even belief we might experience a housing crash like the one that occurred during the last decade.

However, according to two separate reports*, buyer demand dramatically increased over the last three months, leading into this spring buyers’ market (the March data is not yet available).

Both the ShowingTime Showing Index and the National Association of REALTORS Buyer Traffic Index show that buyer demand has increased in each of the last three months.

Buyer Demand Surging as Spring Market Begins | Simplifying The Market

Why the increase in demand? Increased buying power.

According to the National Association of Realtors’ Economists’ Outlook Blog, purchasing a home has become more affordable, which has led to increased demand.

“Due to the combination of falling home prices and mortgage rates, the income needed to make an affordable mortgage payment (mortgage no more than 25% of income) on a median-priced home with 10% down payment and 30-year fixed rate mortgage decreased from $60,425 in June 2018 to $53,783 as of February 2019, and the difference of $6,642 represents a gain in buying power because one can afford a home purchase at a lower level of income.”

Bottom Line

It appears the spring buyers’ market is going to be much stronger than many had projected. Whether you are selling or buying, this is important news.

 

*The methodology behind the indices:

The ShowingTime Showing Index

“The ShowingTime Showing Index® tracks the average number of buyer showings on active residential properties on a monthly basis, a highly reliable leading indicator of current and future demand trends.”

The National Association of REALTORS® Buyer Traffic Index

“In a monthly survey of REALTORS®, NAR asks respondents ‘Compared to the same month last year, how would you rate the past month’s traffic in neighborhood(s) or area(s) where you make most of your sales?’ NAR compiles the responses into an index, where an index above 50 indicates that more respondents reported “stronger” traffic than “weaker” traffic.”

Buyer Demand Surging as Spring Market Begins
Buyer Demand Surging as Spring Market Begins

Tax Changes May be Hurting Housing; Purchase Volume Improves; Rates at 1-Mo Highs

Mortgage rates continued higher for the 5th day in a row today. This brings the average lender to the highest levels in exactly one month. At issue: a series of stronger economic reports at home and abroad have eased concerns about global growth. Not only is a strong economy associated with higher rates in general, but those “concerns” were a big part of the Federal Reserve’s decision to be more bond-friendly back in March. With concerns arguably lessened by recent data, investors may be assuming the Fed won’t be quite as bond friendly going forward. All that having been said, the Fed is NOT likely to make any big changes after one solid month of global economic data. The most immediate cause for pressure toward higher rates came overnight in the form of Chinese economic data. Along with Europe
Tax Changes May be Hurting Housing; Purchase Volume Improves; Rates at 1-Mo Highs
Tax Changes May be Hurting Housing; Purchase Volume Improves; Rates at 1-Mo Highs

GDP tracking at 2.1%

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CNBC's Steve Liesman reports on the latest GDP projections. With CNBC's Scott Cohn and the FMHR traders, Pete Najarian, Joe Terranova, Jim Lebenthal and Meghan Shue.

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GDP tracking at 2.1%
GDP tracking at 2.1%

February wholesale inventories up 0.2%

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CNBC's Rick Santelli reports on new February wholesale and trade data as the first round of earnings for 2019 kicks off.

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February wholesale inventories up 0.2%
February wholesale inventories up 0.2%

China GDP: what to watch

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Patrick Palfrey, Credit Suisse Senior Equity Strategist, and Patrick Schaffer, J.P. Morgan Private Bank Global Investment Specialist & Executive Director, talk about the latest China data, emerging markets, and the global economy

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China GDP: what to watch
China GDP: what to watch