Heading Back to School For “the New Kid”

 

 

For most kids, heading back to school is an exciting time. It’s a chance to reconnect with friends, see new classrooms and experience the accomplishment of moving up a grade level. For some kids, however, a fresh school year also means starting at a new school after a move. This can be a challenging time, but here are some ways to make the transition smoother.

Tips for Families on the Move

1. Tell them about the move as soon as possible. Like you, children need time to process the prospect of change. They also need ample opportunities to say goodbye. So, let them share the news with peers and teachers.
2. Emphasize the positives. Talk about the upcoming move in terms of a new family adventure and keep the emphasis on gains—like a new bedroom or a larger backyard. If you harbor concerns, avoid expressing them in front of your children.
3. Schedule time for fun. When the move will put some distance between your current home and your new one, create a family “bucket list” of places and things you all want to do before moving day.
4. Tour the new school. Start a dialogue with the new school early and ask to arrange a tour for your child, possibly even to meet some of the staff so that on the first day there are some familiar faces. Practice your route to and from school to make it more familiar.
5. Register for sports or other activities. While some organizations may require you be a resident before registering for their programs, signing up for what you can before you arrive, especially if your move occurs during the summer months. It’s an excellent way to introduce your child to future school peers and get them active in the community immediately after arriving.
6. Consider getting involved with the school. Networking as a parent often leads to your kids meeting the children of other parents. In addition, volunteering for committees and clubs also shows your children that you’re invested in their experience at a new school.

After Making a Fresh Start

Even the most adaptable children might need extra attention and time to deal with change. As challenges arise, brainstorm together to help empower your child to arrive at their own solutions.

Remember that it’s important to be patient as you all settle into the next phase of your family’s life. Primarily, be confident and optimistic about your family’s fresh start—it will transfer to those around you.

The housing market improved immensely over the past year and is expected to continue doing better in 2016, many experts agree. However, in this new housing landscape, many trends are emerging that home buyers and real estate agents alike should keep in mind.

Mortgage Rates

Mortgage rates have been low at the beginning of 2016, encouraging many to apply for a loan, according to the Mortgage Banker's Association ^[1]. Rates have been at historic lows for nearly a decade, with interest rates being kept at near zero. In December, that changed when the Federal Reserve began to slowly boost interest rates. Time Money^[2] explained the first increase did not initially have a big effect on mortgage interest rates, partially because it was highly anticipated and many people in the industry were aware of its likelihood. The rate hike is expected to be the first of four, each at 25 basis points. This means the possibility that mortgage rates will be affected throughout the year is greater. Realtor.com explained that, by the end of 2016, the 30-year fixed rate mortgage is expected to be 60 base points higher than it was at the end of 2015 ^[3].

Millennials

Generation Y has had many real estate professionals worried for a while, as very few of them were choosing to give up renting in favor of homeownership. However, last year saw many people from this generation enter the housing market. According to Realtor.com, millennials accounted for nearly 2 million sales - more than one-third of total purchases. Time Money explained that, while millennials aren't buying homes at the same age as their parents and grandparents, they still hold aspirations of owning a home. However, many are waiting until later in life, as they are with other traditional milestones, like marriage and starting a family. This means the population of millennial homebuyers is likely to continue growing in the coming year and beyond.

Inventory

Time Money explained another reason many millennials haven't entered the housing market is that inventory is down right now, especially at lower price points. Inventory is expected to improve in the coming year, though. Inventory grows in two ways: from houses that are put up for sale, and from new construction. Both are expected to increase in the near future. According to Realtor.com, baby boomers are reaching an age of downsizing, leading many to sell their homes and purchase smaller ones. According to National Real Estate Investor, this trend will most significantly affect the New York and San Francisco metro areas, as retirees search for more affordable housing ^[4].

At the same time, Realtor.com reported Generation X is generally doing well financially as they enter their main working years. This gives them the opportunity to upgrade by selling their current homes and buying new ones. This will boost inventory levels in the lower price range, since many of these families will be moving to better neighborhoods. Homeowners will also look into selling their homes while rates are still low, in hopes of buying property with a good rate on a new mortgage. More homes will be built in 2016, as well. Over the past few years, many builders focused on producing high-end and expensive homes, in order to make up for low numbers of employees and rising cost of land. However, as the market continues to demand more low-priced housing options, builders will respond. Realtor.com explained new home prices began to fall toward the end of 2015, and they expect the trend will continue this year.

References

1. Ahmad, Ali. Mortgage Applications Increase in Latest MBA Weekly Survey. mba.org. 01-03-16.
2. Lipka, Mitch. Predictions for the 2016 Housing Market. time.com/money. 12-20-15.
3. Smoke, Jonathan. The 5 Real Estate Trends That Will Shape 2016. realtor.com. 12-16-15.
4. Carlock, Byron. 'Emerging Trends' Study: New Market Opportunities Emerge for 2016 (Part 2). nreionline.com. 01-26-16.

The housing market is experiencing a boost in interested homebuyers, and this is likely due to the decreasing interest rates for home mortgages in the U.S. According to Freddie Mac's Primary Mortgage Market Survey, interest rates for home mortgages inched lower for the week ending Sept. 24.

"Global growth concerns and lackluster inflation convinced the Fed to defer a hike in the Federal funds rate," said Sean Becketti, chief economist at Freddie Mac. "In response, Treasury yields fell about 9 basis points over the week, with some larger day-to-day swings along the way. In response, the interest rate on 30-year fixed rate mortgages dropped by 5 basis points to 3.86 percent. Mortgage rates have remained below 4 percent for 9 consecutive weeks and have remained range-bound between 3.8 and 4.1 percent since May. These low mortgage rates have supported strong home sales, and 2015 is on pace to have the highest home sales total since 2007."

Rates Decrease for U.S. Home Loans

According to the survey, the average rate for a 30-year fixed-rate mortgage dropped to 3.86 percent from the previous week's rate of 3.91 percent. The current average is also notably lower than the 4.2 percent average interest rate for a 30-year FRM seen a year ago at this time.

The average 15-year FRM also dipped to 3.08 percent. This is down 0.03 percentage points when compared on a week-over-week basis.

Both 1-year Treasury-indexed and 5-year Treasury-indexed hybrid adjustable-rate mortgages decreased week-over-week. Their average rates settled at 2.91 percent and 2.53 percent respectively.

Lower Rates Attract More Buyers

The low rates have seemingly encouraged a higher number of interested buyers. According to The Mortgage Bankers Association's weekly survey, for the week ending Sept. 18, applications for home loans rose 13.9 percent from the previous week.

"We saw significant rate volatility last week surrounding the FOMC meeting, and rate declines toward the end of the week likely drove applications from both prospective home buyers and borrowers looking to refinance," said Mike Fratantoni, MBA's Chief Economist. "The 30-year fixed rate remained unchanged over the week even though there was substantial intra-week fluctuation, but we saw rate decreases in other loan products like the 15-year fixed, 5/1 ARM, and 30-year jumbo.

Refinancing applications represented the most significant share of total applications at 58.4 percent. This is 2.2 percentage points above the previous week's share of all home loan applications.

The adjustable-rate mortgage share of the week's applications rose to 6.9 percent.

While total applications increased for the week ending Sept. 18, the shares of loans through the Federal Housing Administration, Department of Veteran Affairs and the U.S. Department of Agriculture decreased slightly on a week-over-week basis.

While there were minimal slides in the share of some types of loans, the increasing shares of conventional loan applications may indicate a stronger economy where interested homebuyers feel more confident in their ability to afford a home.

More buyers may take steps toward homeownership and further bolster the real estate market as we continue into the fall season.