FHFA announces 2016 conforming loan limits

FHFA announces 2016 conforming loan limits

Much of U.S. left unchanged; limits increase in 39 ‘high-cost’ counties

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Opinion, commentary and analysis on everything that makes the U.S. housing economy tick -- not to mention the ghosts in the machine, too. Written by HW's team of editors and reporters each business day.

Millennials rightly positioned to boost economy

April 29, 2013

They may be young, but millennials have witnessed their share of crisis. So far, millennials have lived through two wars, the financial crisis and terrorists attacks, with the most recent being the Boston Marathon—to name a few.

The millennials, also known as Generation Y, range mostly from age 18 to 34, and are 7% larger than the baby-boom generation.

Despite several hurdles like student debt, according to an article from Barron’s, Generation Y could surprise America in upcoming years with their spending power and economic strength. This would bode well for housing — especially home builders — if their emerging spending power is directed towards housing.

Currently, the generation is bogged down with student debt, and student loan balances have surpassed credit card use, auto loans and HELOC.

But the heavy burdens millennials face is slowly easing up with a variety of statistics pulling in their favor, the article explains.

Barron’s elaborated saying, "Take unemployment, which remains high for young adults between the ages of 20 and 24. Last month's 13.3% unemployment rate for this population was down, however, from January's recent peak of 14.2%."

Additionally, the article cites that 19% of men ages 25 to 34 live with their parents, up only 5% from 2007. The percentage of 25-to-34-year-old women still living at home is 9.7%, up from 9% in 2007.

As the economy continues to stabilize, more young adults will wean off of mom and dad and start to live on their own, spurring added economic growth. Plus, 65% of millennials report that their intention to buy a house has significantly increased in the past year.

Meanwhile, the added growth does not stop at buying a home. The greater financial security turns into a snowball effect, leading to an increase in birth rate, a growth in children’s apparel and car sales, the article explains.

The millennial generation is ready to take the next step, if only the economy was moving as fast as they are.


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