Baby boomers, ages 55-75, have long been migrating to Southern states as they enter retirement years. Now a new study shows wealthy Generation X, ages 40-54, are doing much of the same.
SmartAsset.com, published a new study reveals how wealthy Gen X-ers are moving to Southern states.
According to the study, six of the top ten states where wealthy Gen X-ers are moving to are in the South, with Washington as the outlier.
Northeast has become widely unpopular with wealthy Gen X-ers. Most of the outflow is coming from Northeast states, four of which are New Jersey, Massachusetts, Pennsylvania, and New York.
To determine the relocation of rich Gen X-ers, SmartAsset examined inflow and outflow data of people ages 35 to 54 with adjusted gross incomes of at least $100,000.
SmartAsset didn’t discuss the cause behind the Gen-Xer exodus from the Northeast. But one of the factors could have something to do with the removal of state and local tax (SALT) deductions, disproportionately affecting high-tax, or Democrat, states (in the Northeast).
This has direct implications on regional housing dynamics as property tax also falls under the cap. Capping the deduction will mean reduced tax incentives for home-ownership. Indirectly, households will want to live in lower-income tax states (in the South) as they approach or enter their retirement years to hang on to more of their savings.
What Happened to Rates Last Week?
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Mortgage backed securities (FNMA 3.500 MBS) gained lost -22 basis points (BPS) from last Friday’s close which caused fixed mortgage rates to move slightly higher from the prior week, but we are still at the second best (lowest) levels of the year for rates. Overview: Global concern over the trade war between U.S. and China remained very elevated which continued to make U.S. bonds very desirable as a safe-haven during this uncertain time. This strong need for safety (preservation of capital) keep demand high for our bonds which in turn, kept our rates low for another week. Trade War: Treasury Secretary Steven Mnuchin has designated China as a Currency Manipulator. It is the first time in 25 years that the Treasury Department has labeled a major trade partner as a currency manipulator. Meanwhile the PBOC says that it was not responsible for the fall of the Yuan and blamed external factors. White House Chief Economic Advisor, Larry Kudlow, says that the White House is hosting face-to-face trade talks in September. Jobs, Jobs, Jobs: The June Job Openings and Labor Turnover Survey (JOLTS) was better than expected with a 7.348M vs 7.317M estimate. This marks the 15th straight month of a reading above 7M unfilled jobs which is a record. Inflation Nation: The Headline Producer Price Index matched market expectations with a 1.7% pace. But the Core (ex food and energy) was lighter than expectations with a 2.1% vs 2.4% reading. It was still above 2% though. Central Bank Palooza: The Reserve Bank of New Zealand lowered their key interest rate from 1.50% down to 1.00%. The market was expecting a decrease down to 1.25%. The Reserve Bank of Australia kept their key interest rate at 1% which was expected.
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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. |
