Millennials Would Do Anything To Own A Home (Literally)

By Taff Weinstein at

Millennials Would Do Anything To Own A Home (Literally)

There isn't a lot American millennials wouldn't do to have a chance at owning a home some day.

According to a survey of 500 millennials conducted by OnePoll, nearly half of millennials would swear off Instagram forever, and one in four would be willing to spend a week in jail, if it would help them one day achieve the American dream of owning their own home.

So how badly do they want to own a home?  Well, check out this complete rundown of responses from the survey:

In a sign of how desperately out of reach most millennials consider homeownership to be, some 30% of respondents said they felt they had a better chance of dating an A-list celebrity than ever owning their own home. Meanwhile, 40% of respondents said they felt homeownership is "completely out of the question" unless they inherit property from their parents, and 42% said they would like to buy a home, but they simply can't afford it. Nearly half of respondents believe that buying a home would be more difficult now than it was 30 years ago. In a similar vein, only 8% of millennials disagreed with the belief that life is harder now than it was for Baby Boomers.

Source: OnePoll

What Happened to Rates Last Week?

Mortgage backed securities (FNMA 4.00 MBS) lost -21 basis points (BPS) from last Friday's close which caused fixed mortgage rates to move higher compared to the previous week.

Overview:  We had very robust jobs data with a record setting JOLTS report but a big miss in Retail Sales.  But it wasn't the economic data that moved pricing lower, it was news that another government shut down was averted as well as positive momentum with the trade talks with China.

Consumer Sentiment: The February University of Michigan's Consumer Sentiment Index was much stronger than expected, hitting 95.5 vs est of 93.0 and a nice rebound from January's final reading of 91.2

Retail Sales: This is data that was supposed to be released during the government shutdown...they should not have let it out at all as it was awful. December headline Retail Sales dropped by -1.2% vs est of a gain of 0.2%. When you strip out autos, Retail Sales were down by -1.8% vs est of 0.1%.

Inflation Nation: The January Consumer Price Index was a little hotter than expected with the Headline YOY reading coming in at 1.6% vs est of 1.5%. However, that is a decline from December's pace of 1.9%. The Core (Ex food and energy) YOY CPI reading also edged out estimates (2.2% vs est of 2.1%) and matched December's pace.The January Producer Price Index was a mixed bag, certainly very tame though. PPI YOY Ex Food and Energy was higher than expected (2.6% vs est of 2.5%), but the headline PPI YOY was only 2.0% vs est of 2.1% and a lot lower than the last reading of 2.5%.

Jobs, Jobs, Jobs: The December Job Openings and Labor Turnover Survey (JOLTS) had its highest reading ever on record showing more than 7.335M open positions....just waiting for someone with the right skill set. There are now 800K more jobs avail then their are people unemployed in America. 

Small Business Optimism: The January NFIB Index dropped from 104.4 in December down to 101.2 in January but that is still positive territory for the index. The 35 day government shutdown was cited as the main contributor to the decline in optimism.

The Talking Fed: Fed Chair Jerome Powell said “Data at the national level show a strong economy. Unemployment is near a half-century low, and economic output is growing at a solid pace,” Powell said. “But we know that prosperity has not been felt as much in some areas, including many rural places,” like the counties of the Mississippi Delta where he was speaking.

What to Watch Out For This Week:

The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises.

It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets.  Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.


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