Haven Life Insurance Agency LLC (Haven Life), an online life insurance agency, conducted a new study that reveals from 2012 to 2017, millennials moved to large metropolitan areas that already had large concentrations of them.
The survey noted that millennials are living a life of luxury in expensive neighbors with higher wages, rising home prices, and an overall increase in the cost of living. In these areas, the experiences are abundant, and some districts even cater to the lifestyle of these youngsters.
Millennials flocked to large metro areas that have a high concentration of their fellow comrades despite higher home prices and cost of living. The data showed these folks aren't moving to rural America nor the suburbs.
The reason for an extended stay in the city could be due to the delay in marriage and starting families -- thanks to insurmountable student loan debts, high-interest credit card payments, and 72/84 month auto loans -- has made their financial mobility limited.
Millennials are less price-conscious than any other generation, despite the fact that the 2008 financial crash was a little over a decade ago.
Haven Life examined data from the Census Bureau to compile a list of the top 50 cities. The life insurance agency also examined data from Zillow to determine its median home prices and data from the Bureau of Economic Analysis's Regional Price Parity dataset for the cost of living figures.
Portland, Seattle, Denver, San Francisco, and Austin metropolitan areas were some of the hottest regions where millennials were moving to over the period.
Source: Haven Life
What Happened to Rates Last Week?
Mortgage backed securities (FNMA 3.500 MBS) gained just +5 basis points (BPS) from last Friday's close which caused fixed mortgage rates to move sideways from the prior week and remained near their lowest levels of the year.
Overview: We continued to see very strong economic data which caused market participants to begin to question the need for a Fed rate cut this week. 2nd QTR GDP beat out estimates with a solid growth rate of 2.1% and Durable Goods Orders were almost three times higher than expected.
GDP: We got our first look at the 2nd QTR GDP and it was much better than expected. The Headline number grew at 2.1% pace vs est of 1.8%. The Price Index broke well above 2.0% with a 2.5% reading which is a significant movement from the Q1 pace of 0.8%. PCE QoQ were at 2.3% vs est of 0.6%. Core PCE QoQ hit 1.8% vs est of 2.0%.
Durable Goods Orders. The June Headline Durable Goods Orders were much higher than expected (2.0% vs est of 0.7%). When you strip out the volatile transportation sector, it was up 1.2% vs est of 0.2%. The most important reading is the Ex-Defense which was up 3.1% vs est of 1.3%
Central Bank Palooza: The European Central Bank kept their key interest rate at 0.0% and their deposit rate at -0.4%. President Mario Draghi said that the ECB is waiting for new economic forecasts before pressing the button on new stimulus that would require preparation in a situation that remains complex.
Kick the Can: President Donald Trump and congressional leaders struck a two-year U.S. debt ceiling and budget deal. The budget deal would raise U.S. discretionary spending to $1.37 trillion in fiscal year 2020, up from $1.32 trillion this year. The deal moves the U.S. closer to dodging the threat of debt default and automatic, across-the-board spending cuts. It also could prevent a government shutdown when funding expires after Sept. 30, though lawmakers will have to pass separate appropriations bills for that measure.
Brexit: Boris Johnson is the new British Prime Minister which was widely expected over the past month. Most likely not much will happen with Brexit until the cabinet and parliament return from their Summer break in September.