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Thursday, January 02, 2020

A Third Of 18-34 Year Olds Live With Their Parents And Other 2019 Housing Market Highlights, In Charts

As Goldman housing strategist Marty Young writes in his "year in review" housing and mortgage market summary, 2019 was characterized by sharply falling mortgage rates and a strengthening housing market:
  • 120bp: 30-year mortgage rates fell by 120bp between 2018Q4 and 2019Q4.
  • +17%: single family housing starts increased by 17% from November 2018 to November 2019.
  • +3.2%: the Case-Shiller US house price index has grown by 3.2% over the past 12 months.
  • 50%: 50% of outstanding conventional 30-year mortgage borrowers have a 50bp or larger refinance incentive as of 2019Q4 (up from 6% as of 2018Q4).
  • 5bp: agency MBS spreads widened by 5bp in 2019 (vs. 60bp of tightening of IG corporate bond spreads).
  • $230bn: Federal Reserve agency MBS holdings declined by $230bn over the past year.
  • $25bn: non-QM RMBS issuance has reached $25bn in 2019 year-to-date (vs. $11bn in 2018
One remarkable observation: roughly a third of young Americans aged 18-34 now live with their parents: up from 27% before the crisis. Depending on how one looks at this data, it means that either household formation is about to soar, or an entire generation now has doubts it will ever be able to own its own house.

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10 comments:

Anonymous said...

Thank Your Demon-crats for Ruining America !!!!

Anonymous said...

Jake Day basically lives with his mommy and daddy. They own his house.

Anonymous said...

My friend's daughter lived with her parents for 40 years. Not only did she live with her parents but her boyfriend and his 3 kids. They recently got married (kids in 20s) and moved into a new home. Parents are now empty nesters and hate it. Sóoooo! Is it the parents fault??

Anonymous said...

3:08
I'm not a fan of Jake Day, but his parents name are not on the deed to his home. At least not the one on Camden Ave.

Anonymous said...

@ January 2, 2020 at 5:49 PM

Housing being priced so high that people can't afford a home is the fault of the democrats? Not builders and investors and banks?

Home prices are ASTRONOMICALLY higher than they were 50 years ago. The average American simply can't afford to buy a house.

This isn't any fault of any democrats or liberals. This is the fault of greedy investors and capitalists. Profit motivation.

Anonymous said...

8:18
Prices of houses wouldn't be as expensive if it wasn't for all the bs you have to go through to be able to build one. All those requirements to appease the tree huggers is just driving up the prices of homes.

Anonymous said...

@January 3, 2020 at 8:30 AM

Really? It's not the investors, or the builders, or the banks? It's the "tree huggers"? Tell me... how is it tree huggers driving up costs? Lay that one out for me cause tree huggers don't benefit from higher prices.... but investors and builders and banks do.

It's about profits... tell me.. how are the tree huggers profiting from higher prices? I'd love to see you defend that. Please to cite specifics please.

We know for a FACT that house flipping artificially raised the cost of homes at ridiculous rates.. and even after the housing bubble burst home prices STILL didn't drop down to what would be considered normal due to inflation.

But let me back set those hard, demonstrable facts. Please, PLEASE, do tell me about the tree huggers cause I'm all ears.

Anonymous said...

9:04
Wouldn't matter if 8:30 did explain it to you. You wouldn't understand. You are not all ears, something lower on the body.

Anonymous said...

@ January 3, 2020 at 9:19 AM

No substance and all ad hominem attacks. You know that when that happens you just admitted defeat right?

Why not try again, just this time actually bring some ideas and substance to the discourse?

Anonymous said...

Why do you need at least 20 percent down when buying a home. It is hard enough to buy a home with the cost of mortgage and everything else that cost to maintain without giving do much up front. The reason: so financial institutions are not left totally unfunded if the mortgage fails. Another reason: too easy to declare bankruptcy. I know an individual in Fruitland who lost his business by declaring bankruptcy - now he gave up second home, yet still has a half million dollar home, boat, RV. It is his way of life. It makes it harder for you and me to get a loan. Someone had to pay the financial institutions - our 20 percent down.