Loan application volumes increased last week, as government-backed refinances maintained their upward trend, according to the Mortgage Bankers Association.
The MBA’s seasonally adjusted Market Composite Index, a measure of weekly application activity based on surveys of trade group members, rose 1.9% for the seven-day period ending May 17. Volumes increased for the third straight survey, after inching up 0.5% one week earlier. Year-over-year, applications came in 1.5% lower.
“Rates coming down from recent highs spurred some borrowers to act, with increases across both conventional and government refinance applications,” said Joel Kan, MBA vice president and deputy chief economist, in a press release.
The fixed contract rate for 30-year conforming mortgages, with origination balances eligible for sale to the government-sponsored enterprises, dropped to its lowest point in seven weeks at 7.01% among trade group members, falling 7 basis points from 7.08%. Points used to help buy down the rate declined to 0.6 from 0.63 for 80% loan-to-value ratio applications.
The latest numbers come in as the association sees continued challenges this year for lenders, with MBA economists revising some of its annual projections slightly downward this week from April’s forecast. Recent economic data, though, is leading some in the business community to hold out hope for a cut in rates this year from the Federal Reserve that could spur activity.
Refinances propelled weekly gains in volume, particularly among government-sponsored loans. The MBA’s Refinance Index jumped up 7.4% week over week, and activity also came in 21.2% higher from the same week a year ago.
Of note, refinances coming from the Department of Veterans Affairs continued its recent surge, up 31.8% from the previous week, “although the current level of refinancing is still well below its historical average,” Kan said. The Government Refinance Index came in 16.1% higher, while conventional lending rose 3.3%.
The seasonally adjusted Purchase Index, on the other hand, lost some steam, down 1.2% from seven days earlier, its second straight weekly drop. Compared to year-ago levels, activity was also 11.6% lower.
“Purchase activity continues to lag despite this recent decline in rates,” Kan said, noting pressure coming from low inventory, which keeps prices elevated.
As a result, refinances increased to 34% of all new loan applications last week, compared to 66% for purchases. A week earlier the ratio stood at 32% to 68%.
The share of adjustable-rate mortgages, meanwhile, narrowed further to 6.6% from 7% and 7.7% the prior two weeks. Interest in ARMs traditionally moves in the same direction as movements in fixed rates.
Largely thanks to the current heightened pace of refinances, federally sponsored lending activity saw the size of its share grow relative to overall activity. Federal Housing Administration-backed mortgages accounted for 12.8% of all new applications, rising from 12.4% week over week, while VA-guaranteed mortgages saw its share grow to 13.7% from 12.7%. But U.S. Department of Agriculture activity garnered a smaller slice of 0.3%, falling from 0.4% the prior week.
Mortgage rates fell across the board in tandem with the conforming average. The mean fixed-contract rate for 30-year jumbo loans with balances above conforming limits slid down 4 basis points to 7.18% from 7.22% in the previous survey. Borrower points also decreased to 0.44 from 0.58 for 80% LTV-ratio loans.
The 30-year fixed rate for FHA-backed mortgages took a 9 basis point fall to average 6.77% compared to 6.86% seven days prior. Points dropped to 0.88 from 0.94.
The contract average for the 15-year fixed mortgage equaled 6.42%, tumbling 19 basis points from 6.61% a week earlier. Points used to buy down the loan came in at 0.54, down from 0.65.
The average 5/1 contract ARM rate also dipped, finishing last week at 6.48% compared to 6.56% in the previous survey period. Borrowers typically used 0.55 worth of points, down from 0.66, to buy down the rate, which starts with a fixed 60-month term.
Inside: Making money is one thing, but saving it is another. Learn how to save 10000 in a year using the following steps. Plus download your free printable!
The number of people who do not save money is growing at a rapid pace. The economy has changed and many families are struggling to make ends meet, even with two incomes.
That is why saving $10,000 in one year can seem like an impossible goal for some people.
You can save $10,000 in a year.
This has been proven over and over here at Money Bliss.
This has happened because my readers dedicated themselves to one of our money savings challenges.
A lot of people are interested in saving more money right now, but not everyone can afford to save a lot of money. You do not need a ton of income to be successful, you just need to dedicate yourself to new habits of saving.
The thing is – money doesn’t grow on trees, and I wouldn’t recommend waiting for one either if you want your savings plan to be successful.
Are you ready to be the next Money Bliss success story to save 10000 dollars in a year?
If so, then you are in the right place. Let’s create your 10000 saving plan.
How to Save $10000 in One Year
It’s not as difficult to save $10,000 in one year as you may think. All it takes is a few small changes, creating a plan, and some careful budgeting.
The first step is to start saving money.
This can be done by paying yourself first. Decide on the amount you want to save each pay period. Then, you prioritize your savings before all of your expenses and money runs out
Next, you have to decide where to save your money.
Will you put the money into an online savings account where the temptation goes away?
Or invest in your future with a Roth IRA and/or 401k?
Where can you grow your savings over time?
Do not underestimate the power of your employer match contribution. If they offer this option for retirement savings or another type of investment account like Roth IRA or 401K, take advantage by contributing the maximum your plan allows each pay period.
Finally, you have to make sure you are living below your means with your increased saving rate.
These are all the fine details to make sure you learn how to save $10,000 in one year with cutting expenses.
Don’t forget to set up automatic transfers for all of your savings so they’ll be taken care of even when you don’t do it!
Shortly, you will find savings tips to help you save $10,000. The exact steps you need to do to save your first $10K or whether you want to do it again.
Breakdown How to Save 10000 Dollars in a Year:
But, first how much do you have to save to hit that 10K milestone in a year?
To save $10,000 in one year, you must set aside an average of $833.33 per month for 12 months.
Don’t quit reading now and walk away! You are reading this post for a reason. So, you will reach your saving challenge goal.
Let’s break that monthly number down into bit-size chunks.
Daily:
$27.40
Weekly:
$192.31
Bi-Weekly:
$384.62
Monthly:
$833.33
Bi-Monthly:
$416.67
Quarterly:
$2,500.00
Places to Save $10K in a Year
Your goal for the year is to save $10,000.
First, decide where you want to put this dollar bump in savings.
Everyone is at a stage in their financial journey, so what you choose will be completely different than someone else.
Here are some ideas:
Also, you may likely divide up your $10K savings into more than one bucket!
What are the ways you plan on saving $10,000?
Tips to help you Save $10000
According to the Federal Reserve, only half of Americans have retirement accounts.1
This means that most people will retire broke. Yikes!
The only way to achieve a comfortable lifestyle is by saving, investing, and planning for your future.
You can save $10,000 in one year if you make a goal and try your best. It will take some effort as it is not easy to do so, but the rewards are worth it.
If there’s anything that we know for certain about living life well, then this is: “you must be willing to work hard.”
So, what are some practical steps that you can take to save money? Let’s start with the first one.
1. Mindset
The purpose of this personal challenge is to help you save $10,000 in one year.
To save $10,000, you probably cannot continue doing what you are already doing when it comes to saving money.
You need to change your money mindset and your money habits.
There are a few key steps you need to take in order to save money. The first step is to have a proper mindset towards your savings – figure out where all of your money is going, then figure out whether or to what degree you’re living as you can afford it.
The next step is you believe that you are capable of saving money. That is the bigger part of the battle for most. It is believing that are incapable of saving that much money.
If you haven’t heard of a vision board, then you must create one ASAP. And don’t forget those money affirmations.
2. Automate Savings
Automating savings is a great way to save money.
It can be done by setting up automatic transfers from your checking account or even transferring funds from your paycheck into an emergency fund that you will never touch.
This allows for more freedom in spending without having to think about if you saved your goal for that pay period.
With direct deposit, you will save money automatically and the temptation to spend drastically goes down.
If direct deposit is unavailable, you could set up an automatic transfer with your bank.
3. Focus on Saving Goal
All of your money decisions revolve around your goal of saving 10000 dollars.
That is the smart financial goal you have created for yourself. Now, that is your #1 focus.
Here is how to believe you will save $10k before you start:
Tell yourself over and over that you will save $10K by (insert your date).
Post reminders about your goal.
Put a sticky note on your debit or credit cards and/or cash envelopes.
Find an accountability partner.
Review your habits that make saving more different.
All in all, you have to stay dedicated and commit to your saving goal.
4. Budgeting
Budgeting allows you to save money and reduce stress.
It is important to take the time and create a budget that works for your needs to minimize spending and maximize savings.
When you sit down and take a hard look at your budget, it is easier to make cuts and prioritize what needs the most attention.
In this case, your goal for the next year is to save 10000 dollars!
Don’t skip this step! You must pay yourself first to reach your 10k goal.
5. Biggest Expenses
We are talking about your biggest fixed expenses – housing, transportation, and food.
Big moves are difficult, but they produce big results. Downsizing or moving to a cheaper place is drastic, but it can save you thousands of dollars in the long run.
Other options include renting out space in your home on Airbnb, negotiating with your landlord, and taking other measures to reduce housing expenses.
Although it is now more uncommon for families to have only one car, that is a great way to save money on a depreciating asset and ongoing maintenance costs.
Refinancing a car payment or trading in your set of wheels for an affordable ride will help you keep up with the latest trends without breaking the bank. You could also save on gas by doing your own maintenance.
In order to save some money, you should start meal planning and save money on food. You can also eat out less and use coupons or cash back apps for your grocery shopping.
Buying in bulk is a great way to get cheaper prices on certain items, but it might be too much of a hassle if you’re unsure about what kind of foods work best with each other–and there’s always the possibility that they’ll go bad before their expiration date!!
6. Increase Your Income
When you increase your income, the sky is virtually your limit. There are various ways to accomplish this goal but each way comes with its own set of risks and rewards.
The best way to increase your income is by taking on a second job. Even better, negotiate or find a new job that pays more and increases your income.
The next possible way to make money is from a side hustle or an online business, such as Amazon FBA, Etsy, eBay flipper, Rover, or affiliate marketing. This will allow you to be your own boss and work from home.
Check out the best ways to make money online for beginners.
People who want to save $10,000 in a year should increase their income. To do that, you must find ways to earn more money.
Don’t forget that you always want your money to make money! This is called passive income.
It is possible to make more money on your business than you make more money in your current job or career.
7. Track Progress
It’s important to track progress with goals. This will help you see the journey and milestones of your savings.
To track progress, download our free $10000 printable and check off boxes as you hit milestones.
Before you can reach $10,000 in savings, you must first reach smaller amounts such as $500, $1,000, or $5,000.
8. Celebrate Milestones
You can decide what to reward yourself with, but it’s important to celebrate each win by rewarding yourself somehow.
Plan your milestones and rewards in advance.
That way you have the motivation to keep going and know that you can afford your milestone.
Some examples:
$500 = Ice cream treat out
$1000 = Take out from your favorite place
$2500 = Something you want, but haven’t wanted to splurge.
$5000 = Halfway point! Celebrate with dinner out.
$7500 = Plan an experience gift like ziplining or rock climbing.
$10000 = A hotel night and dinner to celebrate with your significant other or friends.
Now, come out with your own milestones and rewards that match your lifestyle and desires.
Bonus Tip – Get Out of Debt
Saving money becomes way easier once you have paid off all debts (excluding mortgage).
This can be accomplished by prioritizing your loans, paying down the highest-interest loan, and then moving on to the next one.
Once you’re free from debts, it’s time for some simple adjustments in your spending habits that will help save thousands over a year.
Debt will always hold you back on your financial journey until you enjoy a debt free life!
How to save $10000 fast
So, you want to save $10,000 in a year?
Many of the methods listed above will help you save $10,000. But, let’s add ways to get your results faster!
You can do it!
At first glance, this might seem like an impossible task but with these tips and tricks, it’s not too hard to set your budget up so that you’ll be able to afford everything from a vacation abroad in your future.
The key is finding ways around spending money on things such as coffee, clothes, and other small luxuries so you can save the most money.
Here is a list of ways to save $10,000 in one year:
Cut your spending on coffee by 90%
Eliminate cable TV from your life for a month
Stop using taxis or public transportation when possible
Avoiding credit card debt.
Living with roommates instead of buying a house.
Get rid of all unnecessary subscriptions
Stop buying coffee at Starbucks or other coffee shops
Don’t buy anything with coupons unless it’s something you really need
Stop eating out
Cook your own food at home
Figure out what you spend the most on in a month and cut back by 20%
Sell any unused items you have in your home
Spend $5 per meal. Frugal meals are good!
Creates grocery list to limit eating out
Live like a thrifty person
Try a no spend challenge
Compare what is happening with your savings goals
Eliminate fees
Be careful with your money. Stop buying things that you don’t need and start living more simply. Do you really need that new iPhone?
Think about purchases over $25, specifically whether or not it’s worth it
Save for a set purchase instead of buying things as you go
Limit all impulse buys
For more ideas, check out our 200+ Frugal Living Tips.
There are some faster methods above that will get the job done quicker than just saving for 12 months.
Saving money isn’t as hard as you think it is. All it takes is some creativity and a little bit of willpower.
How to Save $10000 in a Year with Envelopes
Envelopes are a great way to save money. They allow you to collect interest on the cash you have saved in your account. Envelopes make it easy for people without much financial knowledge to save.
Since you are saving such a large amount of money, it is best to use an online budgeting app that works well with the envelope method.
To save money, you need to know how much you have saved with the 10k in 100 days challenge.
Tracking your progress is a good way of doing this and can be done by using envelopes with the amount inside that corresponds to what total savings count towards each goal.
Download Your 10000 Dollars Printable
Saving up $10,000 can be difficult and it’s not easy to know what to do. The tricky part is learning how to sustain those savings for the long run.
To help you show you how to save on a consistent basis, you can download one of our free $10000 printables.
When you sign up, you will have access to these free money saving challenge printables!
How to Save 10000 in 6 Months
Okay, you are determined to speed up your $10k savings!
That is awesome!
All you have to do is double how much you are saving each pay period.
To save $10,000 in 6 months, you must set aside an average of $1,666.67 per month for 6 months.
Daily:
$54.65
Weekly:
$384.62
Bi-Weekly:
$769.23
Monthly:
$1,666.67
Bi-Monthly:
$833.33
Quarterly:
$5,000.00
How to Save $10000 in 3 Months
Saving $10,000 in 3 months is a difficult task but not impossible. Here are some suggestions:
-Start saving money as soon as you can and work your way up to $10,000.
-House hacking is a must. Buy a house and rent out the rooms for extra income. Live with parents. Another great option is house sit and be paid for your housing!
-Rent out your car (or sell it) in order to save on gas costs.
If your goal is to aggressively save $10000 in three months, then you must drastically reduce all expenses.
To save $10,000 in three months, you must set aside an average of $3,33.33 per month for three months or in a period of 90 days.
Daily:
$111.11
Weekly:
$833.33
Bi-Weekly:
$1,666.67
Monthly:
$3,333.33
Bi-Monthly:
$1,666.67
Quarterly:
$10,000.00
How to Save $10000 in 2 Years
Saving 10000 dollars in a year is a little more aggressive than you believe possible. That is completely okay.
It does not matter how long it takes you to save $10000 as long as you complete the saving money challenge!
To save $10,000 in two years, you should start by saving at least 10% of your income every month. Then you can invest that money into index funds or other investment options to maximize your wealth.
To save $10,000 in 2 years you must set aside an average of $416.67 per month for two years or $5000 per year.
Daily:
$13.70
Weekly:
$96.15
Bi-Weekly:
$192.31
Monthly:
$416.67
Bi-Monthly:
$208.33
Quarterly:
$1,250.00
Are you Ready to Save 10000 Dollars?
A money saving challenge is a competition with the goal of finding ways to save money.
The best way to save money is through baby steps.
To start, you can take a look at your current financial situation and identify the areas of opportunity for savings. For example, if you’re struggling with debt or have an expensive monthly budget, then it’s time to find ways to reduce spending in these areas.
Once you’ve identified some opportunities for savings and created a plan accordingly, make sure that your progress doesn’t slow down by using tools like automatic saving plans and paperless billing.
Money saved in the long run will be worth it and you should participate in any of our money saving challenges.
The key point about saving money is not having too many goals as it will make it difficult to prioritize which ones are more important than others when trying to save more.
This is a simple guide for saving money, and it’s designed to help you save $10,000 in a year. Next up, is learning how to save 20000 in a year.
We have included tips on how to save money, but more importantly, change your finances for the long term.
Related Money Saving Challenges:
Source
Federal Reserve. “Changes in U.S. Family Finances from 2019 to 2022.” https://www.federalreserve.gov/publications/october-2023-changes-in-us-family-finances-from-2019-to-2022.htm. Accessed January 22, 2024.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
“MOASS,” or, the “Mother of All Short Squeezes,” was largely unknown to investors prior to 2021. But a saga involving so-called “meme stocks,” most notably GameStop stock, changed that, and MOASS entered the investing lexicon. In short, that specific scenario, bringing the Mother of All Short Squeezes, as a strategy, to investors’ attention, involved a rag-tag band of day traders taking on the hedge fund giants, with a short-sale “squeeze” that greatly impacted some of those giants.
Meme stocks, including GameStop and AMC Theatres, saw further short squeeze action in mid-May 2024, too. But the episode in 2021 shined a light on investors, short-sales, trading squeeze strategies, and digital trading on a massive scale, all of which fell under the MOASS umbrella.
Key Points
• MOASS stands for “Mother of All Short Squeezes,” a phenomenon where stock prices skyrocket due to mass buying.
• It gained prominence with the GameStop stock saga, where day traders challenged large hedge funds.
• The strategy involves a high volume of purchases to drive up stock prices, countering short sellers.
• Effective execution of MOASS can lead to significant profits for traders who initiate the squeeze.
• The approach carries high risks, especially for those who join late or cannot sell off at peak prices.
Table of Contents
Short Squeeze Basics
A short squeeze is an orchestrated effort to drive up shares of a stock that’s being heavily shorted. MOASS, meaning the Mother of All Short Squeezes, as noted, is a trading strategy in which a high volume of buyers drive up shares of stocks that were being “shorted” by other investors.
A short squeeze trading strategy needs two components to work — a short seller or, more preferably, several short sellers on one side and a group of disciplined contrarian investors who unroll a short squeeze and buy shares of the stock being shorted.
💡 Quick Tip: Investment fees are assessed in different ways, including trading costs, account management fees, and possibly broker commissions. When you set up an investment account, be sure to get the exact breakdown of your “all-in costs” so you know what you’re paying.
How the MOASS Works
In order to understand how a short squeeze — or a massive short squeeze — works, you first need to understand short selling.
Short sellers aim to profit from the fall in a stock’s price. They do so by borrowing and selling shares of a stock that they believe will decline in value. Then, when the stock price falls, a short seller buys the stock at the reduced price, returns the shares, and pockets the profit.
If the short seller makes the right call, meaning the price does fall, they earn the difference between the price when they entered the short position and the lower stock price at which they bought to cover.
If the short seller makes the wrong call, and the price goes up, the investor must buy the stock at a price higher than when they entered the short position, thereby losing money — and negating any potential for a profit.
As short sellers wind up leaving their short positions when they execute a buy order on the stock, those “short-squeeze” buy positions get noticed by other day traders, who also jump in to purchase the stock. That, in turn, drives the stock’s price even higher, since there are fewer shares of the stocks available to purchase.
Short-sellers, highly alarmed by the rising share price, also issue buy orders on the stock to exit the short sale strategy and reduce their investment risk, which completes the cycle and puts the short squeeze in full effect. This can result in the short sales losing money and the MOASS day traders making a profit on the rising stock price.
Recommended: Understanding Low Float Stocks
Get up to $1,000 in stock when you fund a new Active Invest account.*
Access stock trading, options, auto investing, IRAs, and more. Get started in just a few minutes.
*Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.
GameStop: The Prime Example of MOASS
Perhaps the best example of MOASS in action is the GameStop saga in early 2021. At the time, several hedge fund firms had “shorted” GameStop stock, which essentially meant betting the share price of the stock would decline. That didn’t happen with GameStop shares. Some context is important to understand, too, as many retail stocks, like GameStop, had been heavily affected by the pandemic at the time.
But GameStop shares bucked the trend.
A group of day traders hanging out on a Reddit investing forum called “Wallstreetbets” banded together and started buying up shares of GameStop stock. The gambit worked, with GameStop shares skyrocketing from $19 per share to around $350 per share. The retail investors had successfully “squeezed” the short sellers, causing several hedge funds to lose hundreds of millions of dollars on their short positions on GameStop.
If the short squeeze works, the share price will continue to rise and the short investors, many of whom have fixed deadlines built into their short sales positions, will have to sell their shares and cut their losses, thereby driving the stock price even higher. That rewards the short squeeze investor, who profits from the rising share price, especially as other buyers enter the fray and drive the share price up even higher.
Once victory was declared with the GameStop short squeeze, the Reddit traders turned their attention to other so-called meme stocks where short selling activity was particularly high. That group included AMC Entertainment Holdings, Koss Corporation, and Blackberry, which all saw share volumes rise after the MOASS traders entered the fray.
Thus, a series of short squeezes that target more and more short sellers is really what MOASS is all about: squeezing enough short-sellers to achieve critical mass in the trading markets, and making huge profits in the process.
Also, as mentioned, a similar situation played out in May 2024, when certain stocks (including GameStop and AMC Theatres) were at the center of another short squeeze, though smaller in scale than the 2021 events.
Recommended: Pros and Cons of Momentum Trading
MOASS Trading Tips
Investors who want to participate in the next short squeeze effort should be careful. So-called “meme” stock trading can be fraught with risk, especially if you’re left holding the bag after other short-squeezers sell out of their positions before you do.
Take these risk considerations with you before participating in a mass short squeeze play.
Consider Minimal Purchases to Limit Losses
While the adrenaline level can be high when participating in a short squeeze trading event, tamp down emotions by limiting the amount of money you invest in a GameStop-type situation. As the old gambling adage says, never risk money you can’t afford to lose. That goes double when chasing the thrill of a MOASS scenario.
Should You Expect to Lose Money?
There’s a significant chance that you’ll lose money at some point with a short squeeze play.
Nothing is guaranteed in the stock market and that’s especially the case as short-sellers have learned their lesson after meme-stock related events in recent years, and grow more cautious about their investing habits. MOASS trading patterns can be something of a roller coaster ride for investors, and the odds that your ride will dip along the way are high. That can translate into days or even weeks of your short-squeeze buying strategy where your investment returns are written in red ink.
💡 Quick Tip: Are self-directed brokerage accounts cost efficient? They can be, because they offer the convenience of being able to buy stocks online without using a traditional full-service broker (and the typical broker fees).
MOASS Tip: Have a Plan to Sell Quickly
Short squeeze investing isn’t exactly an orderly process and you need to put your interest first ahead of other MOASS investors. Why? Because volatility can be high and prices can swing at a moment’s notice when trading MOASS-themed stocks. Additionally, nobody really has any idea how high a price can go with a short squeeze in play, and nobody really knows if a stock will rise higher at all.
That’s why it’s a good idea to have a fixed “sell price” in mind when engaging in a short squeeze situation — a stop loss order to automatically sell the stock at a specific price can be a good idea in this scenario.
If you buy a targeted MOASS stock at $50 and it goes to $70, there’s no way of knowing if the stock will go any higher — it might and it might not. Worse, the price could slide back to $30 when buyers lose interest in the stock.
Having a good investment exit strategy in a short squeeze scenario, can help minimize investment losses and capitalize on a stock increase when and if it happens.
The Takeaway
“MOASS” means the “Mother of All Short Squeezes,” and perhaps the best example of it in action involved so-called “meme stocks” in 2021. Short squeeze trading strategies can bring a great deal of portfolio-shaking volatility to the investment table, and there are plenty of heavily shorted stocks that could be the next MOASS, but it’s impossible to know which one could trigger a squeeze.
That means MOASS may not be the best strategy for long-term investors or those with an aversion to risk. A short squeeze takes a significant amount of discipline, patience, and attention on the part of the investors, with continual risk in play until the squeeze is played out.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.
Photo credit: iStock/PeopleImages
SoFi Invest® INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Claw Promotion: Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.
It’s not too common to refer to a week with Fed meeting minutes as “super slow,” but at the risk of complacency, how could the Fed possibly share any new ideas three weeks ago (the minutes are from the May 1st meeting) amid what has been a vast sea of Fed comments since then? Moreover, how could any Fed member say anything to surprise the market when all of them have been so consistently on message or at least “near message?” Beyond the Fed minutes and Fed speakers, there’s very little by way of market-moving econ data until Thursday and even then, the Thu/Fri reports are not traditionally a big deal. Last but not least, Friday is a half day before a 3 day weekend. All we can do in such an environment is watch and wait.
So far, we’re watching modest weakness at the 8:20am CME open, but nothing that changes the prevailing 4.34-4.50 range. It’s not uncommon to see opening/closing times move the market a bit more than normal when everything else is so quiet.
Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate mortgages to write unbiased product reviews.
Average 30-year mortgage rates are down slightly today, according to Zillow data, though they remain in the upper 6% range. Rates may inch down further this week as markets continue to assess the impact of the latest inflation data.
On Wednesday, the Bureau of Labor Statistics reported that the Consumer Price Index rose 3.4% year over year in April. This is a slight downtick from the previous month, and in line with what forecasters were expecting. Following the release of this data, the 10-year Treasury yield dropped to its lowest level in five weeks. Mortgage rates typically track this yield.
As inflation slows and the Federal Reserve is able to start lowering the federal funds rate, mortgage rates are expected to go down. Following the release of this latest CPI data, the likelihood of a September Fed cut increased slightly to 53%, according to the CME FedWatch Tool.
In their most recent housing and economic forecasts, Fannie Mae researchers predicted that mortgage rates will inch down as inflation slowly decelerates throughout 2024 and 2025. These forecasters believe 30-year rates could fall to 6.4% by the end of this year and 6.1% by the final quarter of 2025.
Mortgage Rates Today
Mortgage type
Average rate today
This information has been provided by
Zillow. See more
mortgage rates on Zillow
Real Estate on Zillow
Mortgage Refinance Rates Today
Mortgage type
Average rate today
This information has been provided by
Zillow. See more
mortgage rates on Zillow
Real Estate on Zillow
Mortgage Calculator
Use our free mortgage calculator to see how today’s interest rates will affect your monthly payments.
Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
By clicking on “More details,” you’ll also see how much you’ll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest.
30-Year Fixed Mortgage Rates
This week’s average 30-year fixed mortgage rate was 7.09%, according to Freddie Mac. This is a 13-basis-point decrease from the previous week.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you’ll have a higher rate than you would with shorter terms or adjustable rates.
15-Year Fixed Mortgage Rates
Average 15-year mortgage rates inched up to 6.38% this week, according to Freddie Mac data. This is a nine-point decrease since the week before.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.
How Do Fed Rate Hikes Affect Mortgages?
The Federal Reserve has increased the federal funds rate dramatically to try to slow economic growth and get inflation under control. So far, inflation has slowed significantly, but it’s still a bit above the Fed’s 2% target rate.
Mortgage rates aren’t directly impacted by changes to the federal funds rate, but they often trend up or down ahead of Fed policy moves. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often impacted by how investors expect Fed hikes to affect the broader economy.
The Fed has indicated that it’s likely done hiking rates and that it could start cutting this year. This would allow mortgage rates to trend down later this year.
When Will Mortgage Rates Go Down?
Mortgage rates increased dramatically over the last two years, but they’re expected to go down at some point this year.
In April 2024, the Consumer Price Index rose 3.4% year over year. Inflation has slowed significantly since it peaked last year, but it need to slow further before rates can trend down more substantially.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
There are many different people involved in the home loan process.
I wrote about this in detail already, but probably didn’t even include everyone.
Because getting a mortgage is a pretty big deal, a lot of hands are needed to ensure it goes according to plan.
There are also several ways to obtain a home loan, which require different participants.
For example, if you choose to use a mortgage broker to get your loan, an “account executive” will be in the mix.
The Role of a Mortgage Account Executive
A mortgage account executive, or AE for short, works as a liaison between a mortgage broker and the wholesale lender they represent.
With regard to mortgage lending, wholesale simply means business-to-business (B2B) instead of retail, which is direct-to-consumer (B2C).
Simply put, AEs are NOT consumer-facing and have no interaction with borrowers whatsoever.
Instead, they communicate with the mortgage broker, who in turn corresponds with the borrower.
Typically, AEs hold an internal role at the wholesale lender they represent, meaning they don’t leave the office unless they’re doing a sales pitch.
They simply field phone calls from third-party mortgage brokers and work with their staff internally to originate and close loans.
Mortgage brokers rely on AEs to get loan pricing, submit loans to underwriting, clear conditions once approved, provide status updates, and eventually fund their loans.
In a way, they act similarly to a retail loan officer, but deal with another mortgage professional as opposed to a consumer.
What a Typical Day Looks Like for a Mortgage AE
I worked as an Account Executive in the early 2000s, so I can provide some personal insight here.
Generally, mortgage AEs work regular banking hours, such as 8am to 5pm daily. Perhaps staying late on days that are super busy.
On a typical day, an AE will look over loan files that are already submitted to underwriting and approved.
They will determine what conditions are outstanding to get them to the next step, whether it’s drawing loan documents to be signed or funding the loan.
At the same time, AEs are salespeople. This means they need to make a lot of outgoing phone calls to mortgage brokers to drum up new business.
On these phone calls, they will ask brokers if they have any loan scenarios that need to be priced out.
And if so, will provide mortgage rate pricing in the hopes the broker will like what they hear and send the loan to them.
Assuming that happens, the AE will need to organize the file by collecting necessary paperwork, order a credit report, upload a loan application, and get the whole package over to the loan underwriter.
Once the underwriter decisions the file, they will get in touch with the broker, and if approved, send them a list of prior-to-doc (PTD) conditions.
Again, they’ll need to facilitate this paperwork collection process, ensure that a home appraisal is ordered, and provide status updates along the way.
What they communicate to the broker will be shared with the borrower and everyone will work together to close the loan in a timely fashion.
The Job Is Sales and Operations Rolled into One
As you can see, a mortgage AE needs to be both a salesperson and a member of the operations staff.
They need to bring in new business and oversee their loan pipeline to ensure the mortgages in process make it to the finish line.
This means being a good communicator, staying organized, having good time management skills, and the ability to put out fires when they inevitably surface.
Mortgages rarely go completely according to plan, so AEs will need to step in to offer solutions, save files, make hard phone calls, and more.
If an appraisal comes in low, they’ll need to call the broker and work on a new plan to make the loan work.
Similarly, if something turns up during the underwriting process, they may need to get creative to keep the file in good standing and push forward.
And remember, while all of this is happening, they still need to generate new business. It’s a bit of a juggling act and it can be very stressful.
To make matters worse, there are often quotas to meet each month to ensure they make top dollar for the work that they do.
How Do Mortgage AEs Get Paid?
The company I worked for paid both a base salary and commission on loans closed during the month.
The base salary was very low, but still provided assurances that you wouldn’t walk away with nothing.
However, it was ultimately the commission where you could make the most money. And it was all dependent on how many loans you closed each month.
Those who were able to close above a certain dollar amount each month were entitled to a bigger cut.
So you were incentivized to fund more loans. This was also very stressful, as closing an amount below a certain threshold could reduce your take home salary substantially.
For example, if you funded below X dollars, you may have only been paid a flat fee per loan. But if you funded above X dollars, you’d get a percentage that amounted to a lot more money.
Nowadays, mortgage companies may pay AEs a higher per-loan commission but not provide a base salary. This can be a great tradeoff if you close a lot of loans.
Conversely, those who accept a base salary may not make as much per loan, despite the guaranteed salary.
At the end of the day, being an AE isn’t much different than being a retail loan officer.
The main difference is you work for a wholesale lender and interact with mortgage brokers instead of homeowners and/or home buyers.
There are pros and cons depending on who you ask. Sometimes it can be easier to deal with another mortgage professional as opposed to say a first-time home buyer, for obvious reasons.
Connecticut-based lender, servicer and asset manager Planet Home Lending has appointed Bill Shuler as executive vice president and chief information officer. In his new role, Shuler will focus on Planet’s technological growth and enhancements to its operational efficiency.
“My focus has always been on creating pragmatic IT solutions that support dynamic business growth, and I am ready to build strategic partnerships across all areas of Planet and help solidify the foundation for that growth,” Shuler said in a statement. “My goal is to execute a technological strategy that not only streamlines business processes but enhances security and customer experience while reducing costs and aligning with industry standards.”
<img decoding="async" width="389" height="400" data-attachment-id="461864" data-permalink="https://www.housingwire.com/articles/planet-home-lending-appoints-new-chief-information-officer/planet-home-lending-chief-information-officer-bill-shuler/" data-orig-file="https://www.housingwire.com/wp-content/uploads/2024/05/Planet_Home_Lending_Chief_Information_Officer_Bill_Shuler.jpg" data-orig-size="389,400" data-comments-opened="1" data-image-meta=""aperture":"0","credit":"Planet Financial Group","camera":"","caption":"Planet Home Lending Chief Information Officer Bill Shuler","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"Planet Home Lending Chief Information Officer Bill Shuler","orientation":"0"" data-image-title="Planet Home Lending Chief Information Officer Bill Shuler" data-image-description data-image-caption="
Planet Home Lending Chief Information Officer Bill Shuler
” data-medium-file=”https://www.housingwire.com/wp-content/uploads/2024/05/Planet_Home_Lending_Chief_Information_Officer_Bill_Shuler.jpg?w=292″ data-large-file=”https://www.housingwire.com/wp-content/uploads/2024/05/Planet_Home_Lending_Chief_Information_Officer_Bill_Shuler.jpg?w=389″ src=”https://www.housingwire.com/wp-content/uploads/2024/05/Planet_Home_Lending_Chief_Information_Officer_Bill_Shuler.jpg” alt=”Planet Home Lending Chief Information Officer Bill Shuler” class=”wp-image-461864″ srcset=”https://www.housingwire.com/wp-content/uploads/2024/05/Planet_Home_Lending_Chief_Information_Officer_Bill_Shuler.jpg 389w, https://www.housingwire.com/wp-content/uploads/2024/05/Planet_Home_Lending_Chief_Information_Officer_Bill_Shuler.jpg?resize=146,150 146w, https://www.housingwire.com/wp-content/uploads/2024/05/Planet_Home_Lending_Chief_Information_Officer_Bill_Shuler.jpg?resize=292,300 292w” sizes=”(max-width: 389px) 100vw, 389px”>Bill Shuler
Before joining Planet, Shuler was president of WPS Advisors, a financial firm that provides investment management services. Previously, he was the executive managing director and CIO at Home Point Financial, a multichannel originator and servicer. At Home Point, he restructured IT services, paving the way for productivity increases, cost reductions and increased business profitability.
Shuler has also served in CIO leadership roles at GMAC Mortgage/GMAC ResCap, National City Mortgage and Homeward Residential.
In March, Planet hired Matt Kingsborough as regional sales manager to drive the company’s expansion plans in the western U.S.
Planet Home Lending is an originator, correspondent lender, servicer and subservicer of agency and nonagency residential and commercial mortgages. Founded in 2007, it was the only top 10 national lender to grow its sales volume on a year-over-year basis in the first half of 2023, according to Inside Mortgage Finance data.
Redstone Federal Credit Union, based in Alabama, offers two $0-annual-fee credit cards:
A Visa Traditional, for those with less-than-ideal credit histories.
It’s the latter version, though, that’s northern Alabama’s well-kept secret. The Redstone Federal Credit Union Visa Signature card boasts reward rates and perks that outshine some of the best credit cards on the market from some of the biggest banks. And as you might expect from a credit union, the interest rate is also lower than you’ll find on credit cards at those bigger institutions.
But the bar for membership at Redstone Federal Credit Union is high, so not everyone will be able to apply. Plus, the card’s rich bonus rewards come with caps to be aware of.
Here’s what you need to know about the Visa Signature Redstone Federal Union credit card.
🤓Nerdy Tip
If you can’t meet the requirements below to get the Redstone Federal Credit Union’s rewards card, consider the U.S. Bank Altitude® Go Visa Signature® Card instead. It earns rewards in some similar categories: You’ll get 4 points per $1 spent on dining (including takeout and delivery); 2 points per $1 spent at grocery stores, gas stations, EV charging stations and on eligible streaming services; and 1 point per $1 spent on all other eligible purchases. It, too, has a $0 annual fee.
1. You must be a member to qualify
To be eligible for the Redstone Federal Credit Union Visa Signature card, you’ll have to become a member of the credit union. Unlike some other credit unions, this one isn’t as easy to join.
As of this writing, you must fit into one of the following categories:
Have an immediate eligible family member who belongs to the credit union.
Live in a household with a Redstone member.
Be an eligible government employee or contractor in Madison County, Alabama, or with Redstone Arsenal, a U.S. Army base in the Huntsville, Alabama, area.
Be a service member or a dependent of one at Redstone Arsenal or eligible places in Madison County.
Be a reserve service member in Madison County.
Be a member of the National Guard in one of a handful of eligible Alabama counties.
If you don’t live in or have any connection to Alabama, that last bullet point is likely the only way in. Just be aware that you may owe membership fees for joining a partner organization, and that’s on top of the requirements from Redstone Federal Credit Union.
For instance, in addition to meeting the membership criteria above, you’ll also have to open what’s called a “share savings account” to join the credit union. The minimum balance required to open one is $5, and you must keep that amount in the account at all times.
That’s a lot of hoops to jump through. On the other hand …
2. The reward rates are impressive
Many credit cards offer elevated rewards in only one or two select everyday categories — which is what makes the Redstone Federal Credit Union Visa Signature an exception. It earns bonus cash back (issued as points) across multiple top spending categories, including the “big three” for many households: restaurants, gas stations and grocery stores. It even goes a few steps further than that.
Here’s what you can expect:
5% cash back rewards (10 points per $1 spent) at restaurants and on gas purchases, on up to $7,000 spent annually.
3% cash back rewards (6 points per $1 spent) on groceries, discount stores, wholesale clubs, utilities, phone and streaming services, on up to $7,000 spent annually.
1.5% cash back rewards (3 points per $1 spent) on all other purchases.
Rewards expire on the last day of the month, three years after they’re issued.
Still, those are quite generous rates for a $0-annual-fee credit card. Yes, the combined spending caps do limit how much you can expect to earn annually in the card’s 5% and 3% bonus tiers. But if you were to max out both of those caps, you would snag $560 a year in cash back, again for no annual fee — and without taking into account the card’s uncapped 1.5% base rate on all other spending you do.
Typically, other cards that boast 5% cash-back categories feature rotating (not fixed) bonus categories that you must track and/or opt into every three months. These cards also feature caps on that 5% rate, which ends up restricting your bonus earning to about $300 a year. They don’t tend to feature an additional 3%-back category, and the best you’ll generally do on “all other spending” is 1% cash back.
🤓Nerdy Tip
The Blue Cash Preferred® Card from American Express can be more rewarding in certain categories. It offers 6% cash back at U.S. supermarkets on up to $6,000 in spending per year; 6% back on select U.S. streaming subscriptions; 3% back at U.S. gas stations; 3% back on eligible transit; and 1% back on other purchases. But unlike the Redstone card, it has an annual fee: $0 intro annual fee for the first year, then $95. Terms apply.
3. You have redemption options
Technically, the Redstone Federal Credit Union Visa Signature earns points, which are worth half a cent each when you redeem for cash back into a Redstone Federal Credit Union checking or savings account. (That’s lower than the industry standard of a penny per point, but the card makes up for that by awarding you a large number of those points at a time: 10 points per $1 spent = 5% cash back.)
You can choose to automatically redeem your cash back monthly, quarterly or annually. You’ll also have the option to redeem the full amount of available points or a specific number of points. There is, however, a minimum required redemption of at least $5.
But you can also choose to redeem your points for travel, charitable donations or gift cards and certificates from select merchants.
4. It boasts valuable introductory offers
New cardholders can earn $150 in cash-back rewards by spending $3,000 in the first 90 days. (This offer is accurate as of May 2024.)
In addition, for those looking for some interest-free breathing room to pay down short-term debt, the card offers a 0% introductory APR for six months on balance transfers made within the first 30 days. Notably, there’s also no balance transfer fee. (This offer is accurate as of May 2024.)
If you need a longer window to pay down debt, consider instead the BankAmericard® credit card, which offers 0% Intro APR for 18 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 16.24% – 26.24% will apply. It charges a 3% balance transfer fee, but it can be worth paying if it saves you money on interest charges over time.
5. The ongoing interest rate is lower compared with other cards
As of May 2024, the Redstone Federal Credit Union Visa Signature charges an annual percentage rate ranging between 17.25% and 18.00%. That’s lower than the average APR of 22.15% charged for accounts that incurred interest in 2023, based on Federal Reserve data.
It’s also keeping with federal law, which caps the interest rate on most loans and credit cards at federally chartered credit unions. (For the past several years, the National Credit Union Administration has maintained an 18% cap.)
But just because the APR is lower doesn’t mean it’s wise to carry a balance. Interest charges will still add up quickly. You’ll get the most value from this card — and from any rewards credit card — if you pay off the balance in full every month.
If you aren’t eligible for membership at Redstone, but you still want a credit union interest rate with healthy rewards, consider the PenFed Platinum Rewards Visa Signature® Card. Joining PenFed is a little easier for most people, and the card earns the following: 5 points per $1 spent on gas at the pump and electric vehicle charging stations; 3 points per $1 spent on supermarket purchases (including most Target and Walmart locations), restaurants, TV, cable, radio and streaming services; and 1 point per $1 on all other purchases. This card also offers a 0% introductory APR for 12 months on balance transfers made in the first 90 days after account opening. After that, the APR for the unpaid balance and any new balance transfers will be a non-variable rate of 17.99%.
Lye brings over three decades of wide-ranging technology leadership to Fannie’s board. Most recently, she served as chief information officer at electric vehicle startup Rivian Automotive from October 2022 to December 2023, spearheading IT strategy and infrastructure. Read next: Are GSE offerings having an impact on housing affordability? Prior to Rivian, she spent over six … [Read more…]
An aerial view shows a subdivision that has replaced the once rural landscape in Hawthorn Woods, Illinois.
Scott Olson | Getty Images
Mortgage interest rates fell for the third straight week last week, sparking increased demand for refinances. Homebuyers, however, were not impressed.
Total mortgage application volume rose 1.9% compared to the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $766,550 or less decreased to 7.01% from 7.08%, with points decreasing to 0.60 from 0.63, including the origination fee, for loans with a 20% down payment.
Applications to refinance a home loan rose 7% for the week and were 21% higher than the same week one year ago. Rates last week were just 32 basis points higher than they were a year ago, and that gap has been shrinking. The vast majority of today’s borrowers still have rates significantly lower than what is offered today, so even with the weekly gain, demand is still at a very low level.
“Rates coming down from recent highs spurred some borrowers to act, with increases across both conventional and government refinance applications,” said Joel Kan, MBA’s vice president and deputy chief economist. “VA refinances had a double-digit increase for the third consecutive week, although the current level of refinancing is still well below its historical average.”
Applications for a mortgage to purchase a home fell 1% for the week and were 11% lower than the same week one year ago. While higher mortgage rates certainly hurt affordability, today’s buyers are still facing very low supply and stiff competition, which fuels bidding wars.
Mortgage rates have not moved much so far this week, and there is not much expectation of a reaction to the release of the minutes from the Federal Reserve on Wednesday.
“In this environment of high transparency and frequent speeches from Fed members, it’s hard to imagine that the minutes will cause any drama,” wrote Matthew Graham, chief operating officer at Mortgage News Daily. “This is a bit of a paradigm shift for some market watchers who have seen the minutes send rates quickly higher or lower in the past.”