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Amazon Prime Day isn’t the only major sale happening this July. The retail giant Target have also joined in on the summer-ready festivities by kicking off their famous Target Circle Week sale, running from now through Saturday, July 13.
Promising huge savings for this week only, the only catch is that you need to be a Target Circle member to shop the deals. But don’t fret, it is totally free and all you need to do is sign up with an email to get access to the very best savings. And in addition to all the weeklong savings, Target are spotlighting the hottest deal of the day items that you can find further knockdowns on. It really isn’t one to miss.
So as a seasoned shopper (both personally and professionally) I’ve sat down and scoured the Target home sale for hours, so you don’t have to. Here is my edit of the very best home deals to be found.
Shop the Target Sale by Category
Target Circle Week Best Sale Finds
Target Circle Week sale: home decor
22″ Pleated Shade Metal Arch Table Lamp Brass/Cream – Hearth & Hand™ with Magnolia
Nuloom Christana Traditional Checkered Jute Area Rug
Woven Block Print Square Throw Pillow – Threshold™ designed with Studio McGee
33″ Faux Gypsophila Leaf Plant – Hearth & Hand™ with Magnolia
Tic-Tac-Toe Set – Hearth & Hand™ with Magnolia
250 Thread Count Organic Percale Sheet Set
Checkerboard Pouf – Threshold™
Canvas Slipcover Armless Dining Chair – Hearth & Hand™ with Magnolia
Ogden Nightstand Brown – Threshold™ designed with Studio McGee
Vivian Park Slipcover Ottoman – Threshold™ designed with Studio McGee
Modern Turned Bed – Threshold™ designed with Studio McGee
Shiffer Console Table Brown – Threshold™ designed with Studio McGee
Tangkula 3PCS Patio Rattan Furniture Set
Portable Outdoor Patio LED Tabletop Lantern – Hearth & Hand™ with Magnolia
Nuloom Candace Traditional Vintage Indoor/Outdoor Area Rug
Kylie Rattan Bistro Table – Safavieh
66″ Bold Stripe Inflatable Pool Cream/Light Blue/Green – Hearth & Hand™ with Magnolia
Best Choice Products Wicker Egg Chair
An egg chair feels like the ultimate garden luxury. The bohemian style, water- and UV-resistant wicker with weather-resistant cushions make this seat a long-lasting addition to your lounging spot.
What is the Target Circle Week sale?
Target ‘Circle Week’ is a regular sale held for Target’s Circle members – both free and paid. You can find deals across all categories both in-store and online so you’ll be able to shop clothing, homeware, appliances, and more for less.
Circle 360 members (Target’s paid membership subscription) is also reduced during Circle Week, making it just $49 for the first year. Plus, members can get same-day no-fee delivery on orders over $35.
When do Target have sales?
Just like most retailers, Target tend to hold sales throughout the year to help you celebrate big landmark dates like the Fourth of July, Memorial Day, Black Friday and Christmas holiday sales.
Keep an eye on this page for updates and the very best edit of all Target sales held throughout the year.
Source: homesandgardens.com
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The fall of Roe v. Wade has led to a significant shift in the abortion rights landscape. The anti-abortion movement’s long-term strategy has been successful in achieving one of their main goals. The impact on access to IVF and certain forms of birth control is a concern. Democrats are facing pressure to respond with a generational plan, but it remains unclear how they will do so. The future of abortion rights is uncertain, with some wondering if women may need to run for president to secure reproductive autonomy. The situation highlights the need for increased awareness and engagement on this issue.
About the Author
Source: financequickfix.com
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Two days after regulators levied more fines against Citigroup for poor data quality management, the megabank said that it’s not changing its expense guidance for 2024, and it will aim to absorb any additional remediation-related costs into the firm’s existing spending plan.
Citi also said it will adhere to its previously released capital distribution plan, which includes an increase to its common dividend, and it plans to repurchase $1 billion of common stock in the third quarter. In the first quarter of this year, Citi bought back $500 million of common stock.
The updates came during Citi’s second-quarter earnings call, less than 48 hours after the Federal Reserve and the Office of the Comptroller of the Currency assessed a total of $136 million in civil money penalties against the bank for violating a pair of 2020 consent orders related to its risk management and internal controls systems.
Citi, which is engaged in a multiyear risk-management overhaul to correct and enhance those systems, even as CEO Jane Fraser tries to simplify the company and drive higher returns, has 30 days to submit a “resource review plan” to the OCC. The plan is supposed to show that the bank has enough resources allocated to the overhaul to achieve compliance in a timely and sustainable manner.
Citi’s plan, which executives say is already being drafted, will also help determine if additional resources, including more spending, are necessary to finish what the $2.4 trillion-asset company has called a “transformation” of its risk-management programs.
Citi “has been able to find productivity opportunities” this year to keep it within its stated expense guidance, and the bank will stay focused on finding more such cost savings in the event that more compliance spending is needed, Chief Financial Officer Mark Mason told analysts Friday.
Citi has been forecasting total operating expenses of between $53.5 billion and $53.8 billion for the full year. On Friday, Mason said the final tally will likely wind up on the higher end of that range.
“We are actively managing that with an eye towards what’s required” for the risk management overhaul in order “to keep it on track, to accelerate in areas where we’re behind,” Mason said.
Analysts pressed Mason and CEO Jane Fraser about the bank’s lack of sufficient progress, at least in the eyes of its regulators. Mike Mayo of Wells Fargo Securities asked why the 2020 consent orders haven’t been resolved.
“Is it not enough people? Is it not enough money? Do you need to look at it in a different way?” Mayo said.
Fraser responded that the project “is a massive body of work” with multiple layers, and pointed out that the regulators did acknowledge this week that Citi has made some progress.
Vivek Juneja of JPMorgan Securities wondered how much more time Citi needs to fix everything.
“How much longer for you to sort of get this past you?” Juneja said. “Are you talking a couple of years?”
The bank is trying to “get this done as quickly but as robustly as possible,” Fraser responded.
“We’re doing this by making strategic fixes and investments, rather than what I would call the old Citi way, which is a series of Band-Aids that remediate but don’t actually fix the underlying issue,” she said. “I’m not expecting this to change the time frames.”
Amid Citi’s latest regulatory troubles, the company reported a solid quarter. Total revenues were $20.1 billion, up 4% year over year, in part because each of the bank’s five business lines, including its long-languishing wealth segment, grew profits during the second quarter.
Excluding the impact of divestitures, firmwide revenues rose 3%. As part of Fraser’s plan to turn around Citi, the bank has been selling and winding down certain non-U.S. consumer franchises.
The increase in revenues and a decrease in expenses helped drive up Citi’s net income, which totaled $3.2 billion, a 10% increase from the same quarter last year.
Growth in Citi’s banking segment, which includes both business banking and investment banking, was particularly strong compared with the year-ago period, rising 30%.
Operating expenses declined 2% year over year to $13.4 billion, primarily as a result of an organizational simplification and other cost-reduction measures, Citi said.
The decrease in expenses was partially offset by the regulatory fines and other ongoing investments in the risk management overhaul, according to the bank.
Source: nationalmortgagenews.com
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Inside: These are the absolute best life hacks to saving money. This list of frugal living tips with a big impact with greatly improve your budget and finances.
There are many ways to save money. Today, we are going to focus on frugal living tips with a big impact.
Those money saving tips that will save you the most money in the shortest amount of time.
These are the big impact ones of the all of the frugal living tips out there.
If you are a frugal living beginner or desire to save money, this is what you need to start with.
For many households, you are busy and want to find the life hacks that will make the biggest impact in the shortest amount of time. Saving money is important to you. You have bigger and better aspirations in life.
For us personally, we choose to implement these frugal living tips with a big impact because we want to increase our savings percentage each and every year. We have financial independence – all thanks to the Money Bliss Steps to Financial Freedom.
You should check them out. You might be surprised how your perspective will change.
For now, we are going to stick with the frugal living tips that will save you the most money with the least amount of work. Does that sound like a good deal? You want real life hacks – not just clickbait titles. Right?
I thought so… Let’s dig in to the frugal living tips with a BIG impact!
How to Stay Frugal
The better question is why do you want to stay frugal? What are your personal reasons for being frugal?
In this particular case, we are talking about saving money.
In all honesty, staying frugal means that you are constantly wanting to save more money. You have bigger plans in your life and don’t want to be a slave to your money. You desire to make a plan for your money and that is of utmost importance for your household.
Learning how to stay frugal will turn into a frugal lifestyle. Then, for many, it will morph into a thrifty lifestyle.
It is easy to learn how to stay frugal when you have dreams and plans in your life.
In order to fund those dreams, you need to stop living paycheck to paycheck and begin to give purpose to how you spend and save your money.
If you don’t believe me, then check out this case on why being frugal leads to a millionaire’s success story.
Top 10 Frugal Living Tips with a Big Impact
Like it was stated before, there are hundreds of frugal living tips that you can implement right now to start saving money.
However, for too many people, the list is too long and they want to see immediate progress right now.
These are the TOP 10 frugal living tips that will change how you think about money, spend money, and ultimately save money.
If you want to enjoy life and money (and maybe one day reach financial freedom), this is where you want to start. With this list. Right now. Make these easy lifestyle changes and begin a new relationship with money.
1. Wait 24 Hours to Buy
This is the simplest tip to help improve your money management.
Wait at least 24 hours before you buy something.
During that time, you will figure out whether or not you actually want or need the item. If you still want it, then you can purchase it. However, many times you realize that you didn’t need it or it wasn’t exactly what you wanted. So, you end up saving some money.
Obviously, the wait 24-hour rule applies to anything outside the realms of housing, food, gas, and utilities.
One of the smallest wins is to save $50 a week using this rule because over a year, you will save $2600!
Say what!?!?
That is a big chunk of cash that you probably even didn’t realize you were spending. Now, you are one step closer to reaching financial independence.
2. Make a Plan for Your Money
How do you want to spend your money? Have you ever considered where you want to spend your money before you spend it? Don’t worry if you said no. Most people don’t make a plan for their money.
What does it look like to make a plan for your money?
Before you are paid, you decide how and where you plan to save and spend your money. Did you catch the first part? It is the biggest hint I have for you – decide where you plan to save money first. Then second, how you plan to spend the rest.
Many people call this a budget.
The key is knowing where your priorities lie before putting in all of your variable expenses. You must plan to reach your money goals first. Then, figure out how to live on the rest.
That is called making a plan for your money.
3. Say No to Debt
There is nothing frugal about taking out debt.
Around here, we call debt – the cash flow killer.
It is extremely hard to move forward when debt (specifically the debt payment) is holding you back. It is like taking two steps forward only to be taken back a step now and three steps back in the future.
How to get around not going into debt?
You save up for big purchases, and then, you can pay in cash.
Side note… For this discussion, we are not talking about mortgage debt. In many cases, mortgage debt can be considered a “better” debt because purchasing a home may have a lower mortgage payment than current rents in the area.
4. Understand Where You want to Spend Money
Spending money isn’t a bad thing… IF you are spending money in areas that are important to you.
However, too many times we are blindly spending money and not realizing where our money went at the end of the month.
Is that what you set off to do?
Probably not, but for now, you feel like you are a slave to your bills and not being able to enjoy the fruits of your labor. The time is now to figure out where your priorities lie and the area you want to spend money.
To make this process simpler, it is easier to decide where you don’t want to spend money. For us, a no spend challenge helped us visually see where we wanted to spend money and where we actually spent money. The experience was eye-opening and very valuable.
Now, we know where we want to spend money and that has made a big impact for our finances. What could it do for you?
Just to Note… There are times where you want to spend money isn’t possible because you are barely managing to pay your basic bills. This frugal living tips with a big impact is to help you understand where your goals to spend money lie and what is unnecessary spending.
5. Know Your Reason to Live Frugally
Let’s be honest… living frugally doesn’t come with a lot of materialistic perks. You are sacrificing spending money in order to save money. It is hard to watch people mismanage their money only to get bailed out again and again.
To stick with frugal living and a desire to implement saving money hacks, then you must know your reason to live frugally.
Your answer will vary from everyone else’s answer. That is okay because we all have different money goals.
Have you thought about your reason for living frugally?
Our reason to live frugally is to travel. We don’t want to wait until we retire and the kids are grown to travel. We want to travel now and explore as much as possible while we can. Over time, that has morphed into our desire to reach financial freedom and not be a slave to our jobs. (Don’t worry… I love what I do here and don’t plan to change anything.)
What is your reason to live frugally?
6. Keep your Grocery Budget Trim
This is one of the biggest frugal living areas that will have the most immense impact – how you eat food.
Food is one of the basic expenses that you need to survive. However, how you choose to fuel your body will make a difference in your budget as well as how you choose to shop.
By becoming cognizant of grocery spending, you will learn to save money on groceries, which will make a huge impact over time.
Let’s take this example… You can save $200 a month on your grocery spending. That equates to $2,400 in one year. Almost $5000 in two years. At the end of 10 years, you saved $24,000!!
That is no small chunk of change. While spending an extra $200 a month doesn’t seem like much, over time it adds up to a greater amount. That is when you realize that implementing grocery money saving tips will have a bigger impact than you realized.
Overcoming your grocery budget is a learned trait; here are the best items on your grocery budget list.
7. DIY First
I’ll be the first to admit that making something yourself can be overwhelming when you don’t have a clue where to start.
Thankfully, there are plenty of tutorials to get you started with a simple Google search.
Frugal living tips with a big impact is knowing how to do it yourself first.
Here is one that has saved us over $10,000 in the past 10 years… I learned how to cut everyone’s hair in the house. The reason we started cutting our hair was because we were looking for ways to get out of debt faster.
The worst case scenario with DIY… if it doesn’t work out how you expected then you can always call for professional help. The best case is you just saved yourself a lot of money.
Especially if you own a home, you must learn to DIY first. Many of the skills that you would hire a handyman to do used to be taught by the generation before. Too bad that this isn’t still the case. However, thanks to YouTube, you have plenty of opportunities to learn how to do it yourself.
Another option is to trade services with a friend.
8. Find a Cheaper Alternative
One of the traits of a frugal person is searching for cheaper alternatives. This is a simple money saving hack.
This could be as simple as searching for a better price online and price matching. Or even waiting for a sale or clearance.
Finding cheaper alternatives is a great way to save money. Some options include:
- Buying in bulk
- Buying generic
- Buy less items
- Finding items that have dual purposes over single use. (like instant pot / air fryer combo)
You need to open up your eyes to finding cheaper versions or figuring out how to buy what you need at a lower price.
Another alternative is to buy used. This especially holds true for new cars since they lose most of their value within the first 5 years.
Just to Note: A cheaper alternative doesn’t always mean the quality is the same. A thrifty person would want an item that will last longer than the knockoffs.
9. Choose FREE First
Oh my! This hack is one of the best frugal living tips with a big impact.
Why choose FREE first?
Then, you don’t have to spend your hard-earned income on something that is used for a short period of time.
This could be for everything you spend money on.
- Find free things to do with no money.
- Source items you need in Buy Nothing Facebook groups or Nextdoor.
- Choose the library over buying the actual books.
Ultimately, you’re looking at how to get things and do things for free first. This doesn’t make you cheap at all. It makes you frugal. Plus it gives you the chance to spend that money on something else that aligns with your reason to be frugal.
10. Think Long Term
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Too many times, we are so focused on living paycheck to paycheck that we don’t stop to make plans on what we want the next year to be like. Or the next 3 years? 5 years? Even 20 years away?
If you are ready to make a big impact in your life today, start by dreaming and thinking long term financial goals for all of your spending and saving.
Frugal Family Tips
Really quick, we are going to spend a little time discussing frugal family tips for your household.
Why?
Well, kids are expensive and it can be hard not to want the best for your family. And it can be easy to spend money to make that happen.
But first, why should you implement frugal family tips for your household?
Hint: so you can raise financially savvy children who make smart and wise decisions with money as adults. More is caught than today.
Kids learn by example.
So, why not be the best example for your kids with money?
The above list of the top frugal living tips with a big impact is solid money management tips that will build a solid foundation of success.
There isn’t a specific list of frugal family tips. It is taking the above life hacks and talking with your family about why you are making these money decisions. Have conversations about spending money and saving money.
In the long term, teaching frugal family tips will open the door to many opportunities.
That right there, my dear friend, is the gift that will keep on giving.
Tips for Living with Very Little Money
Typically, there are two types of people who are living with very little money and they are on opposite ends of the spectrum.
First of all, don’t compare yourself to others. That slippery slope of comparison is a trap; one which will cause you great harm, stress, and financial strain.
You are looking for tips for living with very little money.
If you are struggling living paycheck to paycheck, then you are in a tough spot right now. Remember, I said right now. You can always change your financial situation. It starts with your money mindset first.
The other person is that extremely frugal person who is consciously choosing to live with very little money. That means you are prioritizing the saving percentage you save each month.
In addition to all of the tips above, you must become EXTREMELY cognizant of your plans to spend money.
You know how and where you plan to spend every single penny that you earn before the money is in your hands.
Consistently, you are finding ways to spend less money and save more money.
A no spend challenge becomes a normal way of living for you. The key is you can’t hold a grudge on your choice of extreme frugality.
Just remember, you can lead a fabulous life with very little money. Money won’t buy your happiness. Finding contentment with your life is the target.
Which Frugal Living Tips with a Big Impact will You Try First?
Okay, so in all honesty, most of these frugal living tips are great money management tips that will completely turn your life in a completely different direction.
You are here because you want to save money with simple life hacks.
This list of the top 10 frugal living tips with a big impact will flip your life upside down for the better.
You need to make a big impact on your finances. Now, you need to embrace these saving money tips and have them become natural habits.
Regardless of income, you are capable of saving your first $10k, then saving $100,000 and ultimately being a millionaire. All it takes is thinking long-term and deciding what is most important for your family and your household.
You hold the keys to a brighter financial future. Grab them and begin to open up doors to more opportunities.
In case you want more frugality in your household, in this post, we outline over 175 + of the best frugal living tips, which are great once you master the money saving tips that will have a longer lasting impact.
For now, what frugal living tips with a big impact will you try first? Comment below and let us know!
You can become the next millionaire with no money!
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.
Source: moneybliss.org
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In the evolving landscape of employee benefits, HR professionals are increasingly recognizing the importance of supporting their workforce in managing student debt. With the resumption of federal student loan payments last year, the nearing end of the federal on-ramp, and the introduction of innovative matching programs, there’s a pressing need for HR teams to stay informed and proactive. Here’s a closer look at the current state of student loan benefits and how HR can effectively implement these programs to enhance financial wellness in the workplace.
Understanding the Impact of Student Loan Debt
Student loan debt remains a significant burden for millions of Americans, with many employees seeking positions that offer not just a paycheck, but also help in managing this debt. Recent surveys, such as the Employee Benefit Research Institute’s 2022 Financial Wellbeing Survey , indicate that nearly three-quarters of employers are now offering or planning to offer student loan debt assistance or tuition reimbursement programs. This shift underscores the growing recognition that student loan benefits offer significant value — not just for workers but also employers. SoFi at Work’s 2024 Future of Workplace Financial Well-Being study found that employees spend a full 8.2 hours dealing with finances every week while at work.
Analyzing the currently available data from the Department of Education (ED), we found that while total loan forgiveness approved by the Biden-Harris Administration has jumped to $167 billion for 4.75 million borrowers , that still leaves roughly $1.73 trillion in student debt outstanding for 43.2 million borrowers. This means that there are still a significant number of individuals in the workforce and about to enter the workforce who will still be working on paying down their student debt.
This will be particularly felt in a few key talent segments. Older borrowers represent an increasing proportion of borrowers who carry federal student debts, both in terms of the number of borrowers and the amount they owe (14% of borrowers are aged 50-61 and have federal student debt with an average balance of $44.2K). Additionally, among borrowers under 40, first-generation borrowers are about three times more likely to be behind on their payments than borrowers whose parents also attended college.
HR professionals should also be aware of the upcoming end of the federal student loan “on-ramp” period and the grace period for 2024 graduates. Specific to this year, as federal student loan repayments resumed, the ED introduced a temporary “on-ramp” period until September 30, 2024. During this time, borrowers who fail to make payments do not face default. The program was aimed to assist borrowers who might find it challenging to resume payments after the pause of almost four years.
Shortly after the on-ramp ends, most of the graduating class of 2024 (those who tossed their caps in April, May, and June this year) will experience the end of the standard federal loan grace period. Most federal student loan types have a six-month grace period after graduation, leaving school, or dropping below half-time enrollment. This means these employees will likely start their repayment journeys in September, October, and November.
It is shaping up to be a busy Open Enrollment season!
Recommended: Helping Employees Make Smart Student Debt Decisions: The Urgent Need for HR Support
Legislative Enhancements: The CARES Act and Secure 2.0 Act
The introduction of the CARES Act and the subsequent Secure 2.0 Act has provided HR teams with new tools to support their employees. Under the CARES Act, employers can contribute up to $5,250 annually per employee towards student loans on a tax-exempt basis through 2025. By enhancing Section 127 benefits, this provision not only aids employees but also offers payroll tax exclusions for employers, making it a mutually beneficial arrangement.
Further expanding the horizon, the Secure 2.0 Act, effective from January 2024, introduces the option for employers to match their employees’ student loan payments with contributions to their retirement accounts. Companies like Chipotle and Kimley-Horn have already adopted this innovative approach, allowing employees to address their student debt while enhancing their retirement savings, presenting a win-win scenario for financial wellness.
Recommended: How Does an HR Team Implement a Student Loan Matching or Direct Repayment Benefit?
Implementing Student Loan Repayment Benefits
For HR professionals looking to implement or enhance student loan repayment benefits, several key considerations must be addressed:
Direct Educational Assistance Benefits (Section 127 Provisions)
• Determine the contribution level. While the maximum tax-exempt direct contribution stands at $5,250, companies can start with smaller amounts, such as $25 to $100 per month, which can still significantly reduce the interest burden for employees.
• Consider tenure and eligibility. Some companies may tie these benefits to tenure, requiring a certain period of employment before employees can qualify, which can aid in retention.
• Ensure compliance. While there are still several open questions for the IRS to clarify, it’s crucial to have a program document that complies with IRS regulations and coordinates with any other educational assistance programs offered by the employer.
Recommended: Understanding Educational Assistance Programs: A Comprehensive FAQ
Qualified Student Loan Payment Matching (Secure 2.0 Act Provisions)
• Understand the timeline for qualified student loan payments. When setting up a qualified student loan match, plan advisers and sponsors must be clear on the timing of when these payments may be reported. This is crucial because the timeline for these matching contributions differs from that of a traditional 401(k) deferral match. Understanding and communicating these timelines can ensure smooth implementation and compliance.
• Don’t exceed matching fund limits. When it comes to the level of matching funds that are available, it’s important to note that contributions that exceed the 402(g) limit, which is the maximum amount of money employees may defer to their 401(k) plan each year, may not be matched. For 2024, this limit is set at $23,000. The traditional 401(k) rule for matching, which allows matching only up to this limit, remains in effect. This ensures that the matching contributions are made within the legal financial thresholds.
By carefully considering these aspects, HR professionals can effectively implement student loan repayment benefits that help employees manage their debt and align with regulatory requirements and fiscal prudence.
The Role of HR in Facilitating Smart Debt Management Without a Formal Program
Beyond implementing direct financial benefits, HR can be pivotal in educating and supporting employees in managing their student debt. If your organization is not yet ready to implement Direct Educational Assistance Benefits or Qualified Student Loan Payment Matching programs, consider starting with providing resources like the SoFi at Work’s Navigating Your Student Debt Workbook and organizing workshops on student loan management. Both offerings can empower employees to make informed decisions about their repayment options.
In addition, the SoFi at Work Guide to the Restart of Federal Student Loan Repayments was developed explicitly to help borrowers reestablish their financial footing after the federal loan pause. This relevant guide provides essential information on smoothly transitioning back into making repayments. Additionally, it includes valuable resources and advice on budgeting, saving, and enhancing financial health overall.
Recommended: The Student Loan Crisis and Its Impact on Borrowers
The Takeaway
As we navigate a landscape where student loan debt remains a critical issue for many workers, the role of HR in facilitating debt management and financial wellness is more important than ever. By leveraging legislative tools and providing educational support, HR professionals can significantly impact their employees’ financial health and, by extension, their overall job satisfaction and loyalty. This proactive approach not only enhances the company’s appeal to top talent but also fosters a supportive workplace culture that recognizes and addresses the real-world challenges its team members face.
Photo credit: iStock/ArLawKa AungTun
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Source: sofi.com
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Rates were prepared to make a big move in one direction or the other heading into today’s high stakes inflation data. Fortunately, the Consumer Price Index (CPI) came in quite a bit lower than expected, leading to a sharp decline in rates at the average lender.
30yr fixed rates had already trickled back below 7% yesterday. Today’s drop saw them surge easily under 6.90%, making for the 2nd largest single day drop so far this year. The improvement also adds to the case that rates are in a downtrend after their last major peak in late April.
CPI is the first major national inflation reading for any given month. Investors focus more on the “core” which excludes food and energy. Month over month core CPI needs to average .17 over 12 months to hit the Fed’s 2% inflation target. Last month’s report was promising because that number fell to .163–the lowest since 2021 at the time.
Today’s core CPI reading was markedly lower, dropping all the way to 0.065. Other components of the report, such as the closely watched housing expense metrics saw even larger drops relative to their recent range. Housing inflation has been a problem for the broader CPI measurements and this is the first report that shows the shift that the market has been waiting for.
While this is the most promising inflation data we’ve seen in years, and while it is made even more promising by adding on to last month’s lower readings, these are still only 2 consecutive months of good news. We’ve arguably seen 2 months of good news in the past only for things to turn back around. Granted, that’s less likely this time, but the Fed and the market can’t quite bet on it just yet. Otherwise, today’s rate drop would have been even bigger.
Source: mortgagenewsdaily.com
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Powell to Congress: Higher rates are “the absolute best thing we can do for the housing market…” – “…particularly for younger people who are not yet in the housing market.”
By Wolf Richter for WOLF STREET.
However we want to interpret this, it’s fascinating. Powell told Congress on Tuesday: “There’s no question that higher interest rates are making it harder to buy homes in the short term. But in the longer term, this is the best thing, particularly for younger people who are not yet in the housing market.”
Did he mean that younger people would benefit from lower home prices, or at least an end of the home-price increases, and that higher rates are going to accomplish that? I don’t know. To speak that truth would be, sacrilege?
“Higher interest rates” means higher than they used to be, so even if the Fed cuts its rates a few times in the future, they’d still be much higher than before the pandemic, and mortgage rates would still be much higher as well.
The purpose of the higher rates is to “get back to 2% inflation for the whole economy,” he said, according to MarketWatch, “so that the housing market can be on a better foundation.”
These higher rates are “the absolute best thing we can do for the housing market and for the economy [so as] to sustainably bring inflation back down, so that people aren’t talking about it anymore,” he said.
Higher for Longer: 7% mortgages a year so far.
According to the Mortgage Bankers Association today, the average conforming 30-year fixed mortgage rate was 7.0% in the latest reporting week.
The 7% mortgage has been a fixture in the housing market for a year. This measure of the average mortgage rate has hovered around 7% since July 2023, ranging from 6.75% at peak-Rate-Cut Mania in January 2024 to 7.9% in October 2023. It has been above 6% since September 2022.
People who financed a home purchase with mortgage rates at 6% or 7% or over 7% since September 2022, hoping that they would be able to refinance that mortgage quickly into a 4% mortgage, have gotten stuck with their mortgage payments.
These new homeowners with 7% mortgages and big mortgage payments may be forced to cut back spending on other goods and services, thereby lowering demand for those goods and services. The Fed is counting on them to do that. They’re one of the official transmission channels of Fed policy rates to the overall economy, to lower demand, and thereby lower inflationary pressures.
Potential homebuyers today have to do the same calculus: When will mortgage rates drop far enough to make it worthwhile refinancing a 7% mortgage, given the points and expenses involved in a refi? This is a tough call – especially since renting an equivalent house is now a lot less costly on a monthly basis.
Compared to the pre-QE era, a 7% mortgage rate is not breaking new ground: From 1970 through 2001, mortgage rates ranged from 7% to 18%. Lower home prices made those higher mortgage rates work.
But ultra-low mortgage rates fuel housing bubbles. When mortgage rates dropped as low as 5.5% in 2005, they fueled Housing Bubble 1, which led to the Housing Bust from 2006-2012. The pandemic-era below-3% mortgages did a wonderful job inflating housing prices in a historic manner.
But now, these 7% mortgages conflict with the too-high prices. And something has to give.
With prices too high, buyers’ strike continues.
Mortgage applications to purchase a home in the latest reporting week remained near the historic lows in the data going back to 1995, and have been there over the past 12 months. The record lows in the data were set in November 2023 and February 2024. Note the mini-spike in January 2024 at the peak of Rate-Cut Mania.
Mortgage applications to purchase a home in the latest week plunged by almost half from the same period in 2021 and 2019:
- From 2023: -13%
- From 2022: -36%
- From 2021: -47%
- From 2019: -48%
Mortgage applications are an early indication of home sales volume – an early indication that buyers who need mortgages remain on strike because prices are too high with those rates:
Inventory has been rising, as sales plunged amid rising new listings, and so active listings exploded in some metros on a year-over-year basis in June, and for the US overall, they jumped by 37% year-over-year. And there’s now plenty to choose from, but prices are too high.
Mortgage applications to refinance a home collapsed in 2022 when mortgage rates surged, and have remained steadfastly at these collapsed levels. Refis without cash-out have nearly vanished. Most of the few refis that are still taking place are cash-out refis.
In the latest reporting week, applications for refinance mortgages edged down further and were down by 84% from the same week in 2021 and by 70% from the same week in 2019.
Refis are a function of mortgage rates. They had experienced a historic boom when mortgage rates plunged to the 2.5%-3.0% range. And they collapsed when mortgage rates began to surge starting in early 2022.
The chart shows the inverse relationship between refi applications (red) and mortgage rates (blue).
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Source: wolfstreet.com
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A survey of mortgage default servicing leaders revealed that foreclosures are expected to rise slowly during the second half of 2024, while ample amounts of home equity should keep many properties in loss mitigation from moving into foreclosure status.
Auction.com, a marketplace for distressed home sales, released its 2024 Seller Insights report on Friday. The report covers a wide variety of insights from default servicing professionals who were surveyed at the company’s annual Disposition Summit in April.
Fifty-seven percent of survey respondents expect growth of 1% to 4% in their organization’s foreclosure volumes during the latter half of this year. Ten percent expect an increase of 5% or more while another 10% anticipate a decrease of 5% or more.
“Completed foreclosure volumes have remained at about half of their 2019 levels this year thanks in large part to more robust loss mitigation options coming out of the pandemic,” Auction.com chief business officer Joe Cutrona said in the report.
Half of loans in loss-mitigation status at the time of the survey were expected to “permanently perform“ and avoid foreclosure status, Auction.com reported. This included 58% of conforming loans purchased by Fannie Mae and Freddie Mac, 49% of government-backed loans and 34% of nonagency loans.
Home equity levels also played a role in these responses as respondents estimated that the seriously delinquent loans (90 or more days past due) in their portfolio had a combined loan-to-value ratio of 65% on average.
“The home equity cushion is being creatively utilized by mortgage servicers and policymakers to help distressed homeowners avoid foreclosure,” Elan Chambers, Auction.com’s senior vice president of strategic partnerships and business development, said in the report.
Rising costs for homeowners insurance and property taxes were cited by respondents as the biggest potential risks for higher delinquency rates in 2024. These “hidden” homeownership costs led the list of risk factors, followed by rising consumer debt delinquencies, rising unemployment, commercial mortgage defaults and declining home prices.
“Although the risk of rapidly rising delinquencies in the near term remains low, there are some signs of consumer and homeowner stress emerging,” said Daren Blomquist, Auction.com’s vice president of market economics.
Default servicing professionals were also asked for their views on unemployment, mortgage rates and home prices. Respondents expected the U.S. unemployment rate to end this year at 3.6%, with mortgage rates declining to an average of 6.3%. Three in four respondents believe that home price appreciation will remain positive through 2024, while 21% anticipate a pullback of less than 5%.
“Our partners in the default servicing industry are on the frontlines of any emerging risk in the mortgage market, and we communicate regularly with them to identify those risks and build solutions of value,” Auction.com CEO Jason Allnutt said.
“Nearly halfway through the year, leaders in this industry are telling us that the risk of rapidly rising delinquencies and foreclosures this year remains low and that they expect a soft landing in the housing market and broader economy despite an expectation that mortgage rates will remain relatively high throughout the remainder of the year.”
Related
Source: housingwire.com
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Stride Funding stopped providing student borrowers with Income Share Loans (ISL) in the summer of 2024. Now, the company only offers Employer-Sponsored Loans.
Stride’s Employer-Sponsored Loan program will match students with employers who vet and select them while committing to hiring them after graduation. Employers will then pay the hires’ student loans based upon the student being employed with them for a set period.
Stride began offering ISLs in 2019 under the name AlmaPact. They were known for providing student loan funding based on a student’s future income potential as opposed to their credit rating. This funding model allowed students to obtain loans without a co-signer.
In 2022, Stride partnered with FinWise, a Utah-based state-chartered bank, to expand their ISL program for students. The company also provided loan funding to students attending universities as well as bootcamps and certificate programs.
What now?
Compare offers from many lenders to find the best offer for your financial situation. Or compare student loan lenders by category:
If you’re seeking a lender to refinance your student loans, use our refinance calculator to assess lenders and find the best one for your needs:
Note: This calculator assumes that after you refinance, you’ll make minimum monthly payments.
Or compare student loan refinance lenders by category:
Source: nerdwallet.com
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The Conventional MCAI increased by 2%, while the Government MCAI decreased by 0.1%. Within the Conventional MCAI, the Jumbo MCAI rose by 3.1%, reaching its highest level since August 2022. Meanwhile, the Conforming MCAI fell by 0.3%. “The jumbo index increased to its highest level since August 2022, but the conforming and government indices continue … [Read more…]