|An expanding family often leads to needing more space, but it also means more expenses. That is why there is a growing trend for growing families to seek housing in less-expensive areas to get more.
A recent study by Zillow found that families with newborns are moving to lower-cost housing. Expecting mothers were found to be more likely to move in any given year than women that are note expecting, despite people generally moving less these days. Among women ages 18 to 50, those who have had a baby in the past year are a quarter more likely than women who did not have a baby to have moved during that year.
Zillow listed the following as possible reasons to explain the data: seeking more space for a growing family; moving closer to family, whether for help with parenthood’s extra responsibilities or for quality time with the grandparents; seeking better job prospects to support a family; or planning ahead to settle in a preferred school district.
The analysis also found that not only do women with newborns move more, they also tend to move to areas with lower housing costs. Zillow found that in 26 of the 35 largest US metro areas, women who both moved and had a baby in the past year tended to move to areas with less expensive homes than where they came from.
The typical new mother moved to an area where homes are valued $11,500 less than where they moved from. Similar-aged women without newborns moved to areas where home values were only about $9,000 less than where they moved from.
Zillow’s analysis found the phenomenon more pronounced in the largest 35 metro areas. New moms from these areas moved to areas where median-valued were $20,100 cheaper than where they moved from. Women from these areas without newborns moved to areas with home values only about $6,300 cheaper.
What Happened to Rates Last Week?
|Mortgage backed securities (FNMA 4.50 MBS) lost -50 basis points (BPS) from last Friday’s close which caused fixed mortgage rates to move higher compared to the prior week and actually hit their highest levels of 2018.
Overview: MBS prices were under gradual pressure all week (higher rates) as we got a steady dose of very strong manufacturing and production data that showed good economic expansion (which causes rates to move higher). But we saw a large spike in rates on Friday in direct reaction to very strong job growth and wage inflation which pushed mortgage rates to their highest levels of 2018.
Manufacturing: The October ISM Manufacturing report was a smidge lower than expected (57.7 vs est of 59.0) but still at a very high level. Internally, the ISM Prices Paid spiked upward to 71.6 vs est of 65.0. The October Chicago PMI was a little lighter than expected (58.4 vs est of 60.0) but still came in at a very robust level. Both Employment levels and Production rose at a fast pace.
What to Watch Out For This Week:
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.