Homebodies, financial flashback & marital money



The housing inventory crunch is largely due to a spike in the amount of time Americans are staying in their homes. Based on a joint analysis of indicators with Moody’s Analytics, First American Chief Economist Mark Fleming said, “…today, we are in a near unprecedented homebody era, as increasing mortgage rates, low supply, low rates of foreclosure and tight credit have increased homeowner tenure to the highest level in 18 years.” The long-term historical tenure for U.S. homeowners is six years.


A rate decline led to an application incline according to Freddie Mac’s Primary Mortgage Market Survey (PMMS) for the week ending January 10. The PMMS credits lower energy prices and continued income growth for a 20% increase in mortgage applications last week as rates for a 30-year fixed rate mortgage dipped to the lowest levels since March of last year.


The number of Americans who tapped home equity reached a 10-year high in November as the number of borrowers who refinanced to get better interest rates or terms dropped to the lowest level since 2005. Cash-out refinances comprised the largest share of loan origination activity since 2008 according to Black Knight Financial Services’ November Mortgage Monitor report.


While wages of men and women with at least a HS diploma are similar early in life, they diverge dramatically with age. The gap peaks at about age 50 with men earning about $76,000/year and women earning about $49,000/year. However, at all ages there is no gap between single women, single men and married women. Married men, however, earn much more and are the cause of the entire gap.

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