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?
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.
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.
What to Watch Out For This Week:
The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises.
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.