by Tim McLaughlin, Senior VP, Weichert Financial
Millennials and Generation X Americans reportedly place a higher value on homeownership than their older counterparts, a survey found.
While 96% of the survey respondents said homeownership was important, it was ranked as “very important” by 77% of those between 25 and 34 and 78% of those between 35 and 44.
The survey was conducted between Dec. 5 and Dec. 15 with the sample consisting of people between 25 and 64 who either recently bought or sold a home or they said they were considering buying or selling a home.
Millennials and Generation X, about 85 million people strong, face a unique opportunity in US housing; they are generally optimistic about homeownership and, by nature, share a strong sense of community. As important, many were not impacted by the real estate downturn and are looking at today’s buying opportunities with keen interest.
Right now, 63% of those surveyed said they had a favorable or somewhat favorable perception of the residential real estate market right now, with younger people more likely to have a favorable opinion than older ones.
What is driving the bond market selloff over the past couple of weeks?
Investors seem to have turned to offstting factors that encourage risk taking, thus “profit taking”/selling of safe U.S. Treasuries and Mortgage Backed Securities with the reallocation of those funds into higher risk assets: Corporate and Junk Bonds, Hedge Fund Allocation, and Equities in general. The Dow Jones alone is up a whopping 6.5% in the first five weeks of 2013.
U.S. economic data is improving month over month, fears over China’s economy deteriorating are fading and the European Central Bank’s bond-buying program deters investors from attacking the sovereign debt market in Spain and Italy. All those factors have contributed to more global economic confidence, and with that, a reallocation of investment funds.
However, 30 year mortgage rates still have a “3 handle”, and 15 year rates are still in the high 2% range with points, so still an excellent time to procure financing near the lows.