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Mom? Dad? I'm Home!
 Over the past ten years, the economy has boomed and so has the number of boomerang kids. Close to 18 million 18-34 year olds live with their parents, up from some 12.5 million in 1970. More than half of the current college graduates say they plan to live with mom and dad after graduation, and about 20% of them plan to stick around for more than a year. The job picture for young adults isn't nearly as bleak as it was in the early '90s, when Generation X liberal arts grads entering the labor force in the middle of a recession ended up living at home by default. They're back home by choice, and parents seem more comfortable with the arrangement. Today's parents aren't as embarrassed as they were a decade ago to admit that their kids are back.
Young adults themselves are more inclined to view coming home as a stepping stone to greater financial independence, having a chance to pay off debt or save for a down payment on a house. They are less adamant about breaking loose from their parents than they used to be. Young people are much more approving of their parents and parents are much more approving and comfortable with the culture of their children.Still, parents will be most successful in dealing with their boomerang kids if they work out a cost sharing arrangement and set a timetable for their departure. The reason for all this thought is to always remember this possibility when you are considering a new purchase, be it a trade up or trade down. Also consider this if you are contemplating a refinance. You might be staying where you are either longer or shorter than you think. 2001 Fannie Mae National Housing Survey America's housing market seems to be shaking off news of an economic slowdown, and in some quarters, has been credited with staving off a recession. Mortgage originations are at an all time high for 2001, as Americans have moved to refinance their mortgages to take advantage of lower interest rates. The strength of the housing market is reflected in the enthusiasm of respondents to the National Housing Survey toward their own personal finances and prospects for their future. While prospects for continued robust economic growth might be less certain today than in the recent past, most Americans seem undaunted. Sixty-two percent of respondents agreed with the statement, "It is a good time to buy a home because interest rates are low." The vast majority of Americans, 90 percent, believe their personal situation will get better or stay the same over the next year. The return to more attractive mortgage interest rates has spurred a refinance boomlet. The percentage of respondents who said now is a very good time to buy was 29 percent, up from 19 percent the previous year. |
