Home Buying Gets Easier as Down Payments Dip

One hurdle to first-time homebuyers is starting to get a little lower: The average down payment for a home fell to less than 15 percent in the first quarter of 2015 to its lowest level since early 2012. The average down payment for the quarter was $57,710, according to RealtyTrac.
The lower down payments reflect new loan programs recently introduced by Fannie Mae and Freddie Mac, and lower insurance premiums for Federal Housing Authority Loans. The market is also adjusting as large, institutional investors who had been buying starter homes as rental investments dial back.
Related: U.S. Homeownership Dips, But Household Formation Rises
“Down payment trends in the first quarter indicate that first-time homebuyers are finally starting to come out of the woodwork, albeit gradually,” RealtyTrac vice president Daren Blomquist said in a statement.
Broken down by type of loan, the average down payment for conventional loans was 18.4 percent ($72,590), and the average down payment for FHA loans was just 2.9 percent ($7,609). FHA loans as a share of all mortgages increased from 21 percent in January to 25 percent in March.
Among the country’s largest counties, Wayne County in Detroit, Mich., had the lowest average down payment (12 percent), and New York had the highest (37 percent).
While lower down payments are good news for first-time homebuyers, they also are a reminder of practices that led to the housing bubble that began to burst in late 2006 and contributed to the financial crisis. During the height of the boom, buyers were able to purchase homes that they couldn’t really afford by putting little or no money down on the property.
The 3 Big Reasons You’re Getting Nothing Done at Work

Cell phones often get blamed for the always-on work culture that keeps us tethered to our jobs around the clock.
Turns out they might be the reason we’re not getting our work done during office hours in the first place. More than half of employers say that cell phones and texting are the biggest productivity killers at work, making them the number one distraction, according to a new survey from CareerBuilder.com.
Other top productivity killers included the Internet, named by 44 percent of employers, gossip (37 percent), and social media (37 percent).
Related: 10 Ways to Boost Happiness at Work
“There are so many stimulants in today’s workplace, it’s easy to see how employees get sidetracked,” Rosemary Haefner, Career Builder’s Chief Human Resources Officer said in a statement “The good news is, taking breaks from work throughout the day can actually be good for productivity, enabling the mind to take a break from the job at hand and re-energize you.”
Nearly half of employers said that such distractions compromised the quality of work, and 30 percent said they caused lower morale since other workers had to pick up slack for their preoccupied peers. A quarter of employers said that distractions hurt the boss/employee relationship.
Nearly 3 in 4 employers have been proactive about battling productivity killers, with a third blocking certain Internet sites and 23 percent banning personal cell phone calls and usage on the job.
Haefner recommends that workers stay focused by scheduling breaks, surrounding themselves with productive people and taking walks to rejuvenate the brain.
3 Big Reasons You’re Getting Nothing Done at Work

Cell phones often get blamed for the always-on work culture that keeps us tethered to our jobs around the clock.
Turns out they might be the reason we’re not getting our work done during office hours in the first place. More than half of employers say that cell phones and texting are the biggest productivity killers at work, making them the number one distraction, according to a new survey from CareerBuilder.com.
Other top productivity killers included the Internet, named by 44 percent of employers, gossip (37 percent), and social media (37 percent).
Related: 10 Ways to Boost Happiness at Work
“There are so many stimulants in today’s workplace, it’s easy to see how employees get sidetracked,” Rosemary Haefner, Career Builder’s Chief Human Resources Officer said in a statement “The good news is, taking breaks from work throughout the day can actually be good for productivity, enabling the mind to take a break from the job at hand and re-energize you.”
Nearly half of employers said that such distractions compromised the quality of work, and 30 percent said they caused lower morale since other workers had to pick up slack for their preoccupied peers. A quarter of employers said that distractions hurt the boss/employee relationship.
Nearly 3 in 4 employers have been proactive about battling productivity killers, with a third blocking certain Internet sites and 23 percent banning personal cell phone calls and usage on the job.
Haefner recommends that workers stay focused by scheduling breaks, surrounding themselves with productive people and taking walks to rejuvenate the brain.
Now 16-Year-Olds Can Double Your Car Insurance

As if you don’t have enough to worry about when your 16-year-old hits the road for the first time, get ready to see your insurance bill nearly double.
The average insurance premium for a married couple goes up 80 percent on average when adding a teen, but it spikes a full 16 percent more for adding a 16-year-old, according to a new report by InsuranceQuotes.com.
Requesting a “good student” discount is one way to offset the premium hike. “I’ve seen discounts as high as 25 percent for students who maintain at least a B average in high school or college,” InsuranceQuotes.com senior analyst Laura Adams said in a statement.
Related: The Best Time to Buy Car Insurance
And once a teen hits the ripe old age of 19, insurance increases by just 60 percent.
It’s much more expensive to insure teenage boys, with premiums increasing 92 percent for teen males versus just 67 percent for girls.
The analysis found that teenagers cost the most to insure in New Hampshire (115 percent increase), but parents will also see premiums double in Wyoming, Illinois, Maine and Rhode Island.
Hawaii is the only state that prohibits insurance companies from basing insurance quotes on age or length of driving experience, so it has the lowest increase in the nation (17 percent). Other states where parents won’t take as big a hit are New York (53 percent) and Michigan (57 percent).
Parents may be able to nab better car insurance rates by shopping around with several insurers.
Thinking Ahead Could Be Holding Women Back

Different attitudes in how men and women prepare for their futures might be a factor contributing to the gender gap, a new study published in Gender & Society finds.
In imagining their work paths, women were disproportionately more likely to think and worry about parenthood than men. And in anticipation of the responsibilities and challenges that parenthood brings, women were more likely than men to downscale or alter their career goals.
Brooke Conroy Bass, who wrote the article, conducted in-depth interviews with 30 heterosexual couples between 25 and 34 who have not (yet) had children.
Related: Millennial Women Are Taking Charge – at Home and at Work
Preparing for the future has emotional and behavioral consequences for women that men don’t suffer as much from, she found. Because of these “gendered anticipations of parenthood,” the inequality in the market starts much earlier than we tend to think.
Bass told Futurity that career trajectories among men and women shift as parenthood approaches, with men investing more effort in their jobs and women dialing back.
The study suggests that part of the problem contributing to the gender wage gap, penalization for maternity leave and the difficulty of making it to the top is anticipating the future.
But should women be penalized for displaying foresight, a characteristic that employers usually value?
American Kids Aren’t Such Stoners After All

Turns out the young people of America are not as high as you thought they were. The use of illicit drugs, alcohol and tobacco among young people has been falling, according to new data.
While the nationwide rate of illicit drug use has gone up, the percentage of youths using illicit drugs has declined, according to a report from the Substance Abuse and Mental Health Service Administration (SAMSHA), part of the Department of Health and Human Services. The illicit drugs include marijuana/hashish, cocaine (including crack), hallucinogens, heroin, inhalants or prescription-type psychotherapeutics.
Among youths aged 12 to 17, the rate of illicit drug use was down to 8.8 percent in 2013 from 9.5 to 11.6 percent in the years 2002 to 2007, the SAMSHA study said.
Related: New Lifetime Estimate of Obesity Costs: $92,235 Per Person
But in 2013, drug use among those 12 or older was up to 9.4 percent from the 7.9 to 8.7 percent found between 2002 and 2009. The rise was attributed to increased rates of marijuana use, both medical and nonmedical, among adults aged 26 and older — and that rise probably doesn't fully reflect the recent legalization of recreational marijuana in Colorado, Washington, Oregon and Alaska.
The report also suggested that alcohol is losing some of its allure for the young.
Between 2002 and 2013, the percentage of underage people who drank declined from 28.8 percent to 22.7 percent. In addition, the proportion of binge drinkers — those who consumed five or more drinks during one occasion — decreased from 19.3 percent to 14.2 percent in the same years.
In additional good news, tobacco and cigarette use among all age groups has declined sharply since 2002.