The Appraisal Foundation has settled the “secretary-initiated” complaint with the Department of Housing and Urban Development over fair lending practices, including creating a $1.22 million scholarship fund.
HUD’s press release describes the conciliation agreement as historic, resolving a complaint “alleging discriminatory barriers preventing qualified Black people and other persons of color from entering the appraisal profession on the basis of race in violation of the Fair Housing Act.”
The Appraisal Foundation’s announcement about the settlement emphasized that the investigation process started in December 2021 did not result in any findings.
“We are pleased to have reached this conciliation agreement,” recently appointed Appraisal Foundation President Kelly Davids said in the group’s press release. “We appreciate HUD’s recognition of our proactive efforts to lead the appraisal profession to welcome a new, diverse generation of appraisers and their support of our forthcoming scholarship program to aid new entrants to the field.”
HUD’s comments focused on the lack of diversity in the appraisal profession and the Foundation’s role in that, namely its experience requirement, where a friend or family member who is already a licensed appraiser has to be willing to supervise as the applicant gains on-the-job experience.
“The lack of diversity within the appraiser workforce can contribute to patterns of mis-valuation in communities of color,” HUD press release quotes the Interagency Task Force on Property Appraisal and Valuation Equity as commenting. It cites Bureau of Labor Statistics data that states the industry is 94.7% white.
Yet the agreement declares “Respondent denies that the Appraiser Qualification Criteria has caused or resulted in any violation of the Fair Housing Act, but agrees to enter into this Conciliation Agreement to conclude the Investigation.”
It has a three-year term, set to expire on July 9, 2027.
“To help eliminate racial and ethnic bias from home appraisals, we must ensure that the industry looks like America,” HUD Acting Secretary Adrianne Todman said in the agency’s release.
“Today’s historic agreement will help build a class of appraisers based on what they know instead of who they know. This settlement will help bring us one step closer to rooting out discrimination in housing and opening doors to opportunity for all,” she added.
Under the agreement, the Foundation is creating a $1.22 million scholarship fund, which will cover the cost of aspiring appraisers to attend Practical Applications of Real Estate Appraisal programs, an alternative pathway to fulfill the experience requirement.
Details, including eligibility and how to apply, will be shared when the program is formally announced, the Foundation press release said.
The Appraisal Foundation has been in the crosshairs of the head of another member agency of the Federal Financial Institutions Examination Council, Director Rohit Chopra of the Consumer Financial Protection Bureau.
Chopra penned a letter after the PAVE report came out in March.
“These issues are deeply troubling as the Appraisal Foundation is one of the most — if not the most — powerful players in America when it comes to appraisals and plays a controlling role in key issues contributing to appraisal bias,” Chopra wrote. “As long as the Appraisal Foundation remains an insular body controlled by a small circle, operating behind closed doors, those issues will continue to go unaddressed.”
You can actually get paid to go to college. Did you know that? Scholarships, grants, and loans can help, but some programs offer direct payments for attending school. This article will explore the best ways to earn money while studying and provide tips to maximize these opportunities.
Federal Work-Study Program
The Federal Work-Study Program offers part-time jobs for students with financial need. It helps cover college expenses while providing valuable work experience. By participating, you can earn money to pay for tuition, books, and living costs, reducing reliance on student loans.
Find Tuition-Free Schools
Tuition-free schools offer financial aid and scholarships covering the entire cost of attendance. While they often have strict requirements, they provide an opportunity to attend college without accumulating student loan debt. Researching and meeting eligibility criteria can help you access these programs and save money on your education.
Learn More: How to Pay for College Without Loans and Student Debt
Scholarships
Scholarships provide financial assistance to college students, reducing the need for student loans. With numerous scholarships available, students can access funds for tuition, books, and living expenses. By applying for scholarships, you can secure additional income to support your college education and minimize the financial burden.
Learn More: What is the Scholarship System? Plus Q&A with the Founder
Military Tuition Benefits Program
The Military Tuition Benefits Program assists service members and veterans in paying for college. It covers tuition, fees, and other educational expenses, reducing reliance on student loans. By fulfilling military service requirements, you can access financial assistance and pursue your education without accumulating significant debt.
College Tuition Reimbursement Programs
Corporate tuition reimbursement programs offer financial support for employees pursuing higher education. Employees can receive reimbursement for tuition costs, minimizing the need for student loans. By taking advantage of these programs, you can invest in your education without incurring substantial debt, enhancing your earning potential and career advancement opportunities.
Learn More: How to Pay for College Without Parents Help
Pell Grant Program
The Pell Grant Program provides federal financial aid to eligible undergraduates based on financial need. By completing the FAFSA, students can access Pell Grants to cover college expenses without relying on student loans. This program offers essential support for students pursuing higher education, helping them achieve their academic goals and minimize financial stress.
Learn More: Do You Have to Pay Back Financial Aid? FAFSA Answers
Teacher Education Assistance for College Students (TEACRS) Program
The TEACH Grant Program offers financial aid to students pursuing careers in education. By serving in high-need areas, such as low-income schools, students can access grant funding to cover college expenses. This program supports aspiring educators, enabling them to pursue their passion without accumulating excessive student loan debt.
Armed Forces Health Professions Scholarship Program (HPSP)
The HPSP provides scholarships to individuals pursuing careers in the health professions. By joining the Armed Forces, recipients receive financial support for tuition, fees, and living expenses. This program offers valuable training and experience while reducing the financial burden of higher education, making it an attractive option for students seeking to minimize student loan debt.
Internships
Internships provide students with real-world experience and potential income opportunities. Paid internships offer compensation while helping students gain industry knowledge and build professional networks. By securing paid internships, students can earn money to support their college education, reducing reliance on student loans and enhancing their career prospects upon graduation.
Learn More: Best Side Hustles for College Students: Ideas for Fast Money
Ask For Tuition Discounts
Requesting tuition discounts can lower the cost of college education. Many colleges offer discounts based on financial need or academic performance. By researching discount policies and reaching out to financial aid offices, students can access additional funding to cover college expenses. This proactive approach helps minimize student loan debt and maximize financial support for higher education.
More Ideas on How to Get Paid to Go to School
Discover additional strategies to earn money while attending college. Explore various opportunities, including scholarships, grants, internships, and tuition discounts, to minimize reliance on student loans and enhance your financial well-being. With careful planning and resourcefulness, you can achieve your educational goals while mitigating the financial challenges associated with higher education.
To learn more: How to Get Paid to Go to School: 18 Ways to Get Paid to Attend College
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Navigating the complexities of educational assistance programs can be challenging for employers and employees alike. Recent legislation changes have expanded how employers can provide direct and indirect education assistance. Still, the new tax incentives offered by the Secure 2.0 Act and Section 127 can be confusing. While they sound alike, they take different approaches to the same problem.
In this article, we’ll provide a detailed FAQ based on section 127 of the Internal Revenue Code to help you understand how these benefits can be leveraged, whether you’re an employer, employee, or self-employed individual.
What Is an Educational Assistance Program?
An educational assistance program is a plan established by an employer to provide educational benefits to its employees. To qualify under U.S. Code § 127 – Educational Assistance Programs , the plan must be in writing and meet specific requirements. These programs are designed to support employees in furthering their education, covering expenses such as tuition, qualified education loans (as defined in section 221(d)(1) of the Code ), fees, books, and supplies.
Most importantly, these programs have the benefit that they are tax-free, up to $5,250 per calendar year. This means the benefits provided under this threshold are not included in the employee’s gross income nor reported as wages on their Form W-2.
Recommended: How Does an HR Team Implement a Student Loan Matching or Direct Repayment Benefit?
Can Educational Assistance Cover Loan Payments?
Yes, under certain conditions. Payments on principal or interest of qualified education loans are considered educational assistance benefits if made after March 27, 2020, and before January 1, 2026. These payments must be for the employee’s education and not intended for a family member’s education. The total combined limit for these payments and other educational assistance is still $5,250 annually.
This section of the Code is most commonly referred to as the “CARES” provisions of Section 127, as these amendments were part of the broader Coronavirus Aid, Relief, and Economic Security (CARES) Act package. The CARES Act provision was set to expire at the end of December 2020, but Congress passed the Consolidated Appropriations Act before that happened, extending the tax break through the end of 2025.
The IRS discusses what qualifies as an eligible loan in more detail here.
Recommended: Helping Employees Make Smart Student Debt Decisions: The Urgent Need for HR Support
Are There Restrictions on the Types of Courses Covered?
Per the Code, educational assistance benefits can not cover payments for the following items:
• Meals, lodging, or transportation.
• Tools or supplies (other than textbooks) that you can keep after completing the course of instruction (for example, educational assistance does not include payments for a computer or laptop that you keep).
• Courses involving sports, games, or hobbies unless they:
◦ Have a reasonable relationship with the business of the employer
◦ Are required as part of a degree program
An employer can further define what their program will or will not pay for as long as it meets the other requirements of the provision.
Recommended: Guide to College Tuition Reimbursement
Who Can Benefit From These Programs?
Educational assistance programs are intended for the exclusive benefit of employees. They cannot discriminate in favor of highly compensated employees or disproportionately benefit shareholders or owners. However, self-employed individuals and owners who meet specific criteria can also receive benefits, though not more than 5% of the total benefits provided can go to owners or their families.
Recommended: The Student Loan Crisis and Its Impact on Borrowers
What Happens if Benefits Exceed $5,250?
Suppose educational assistance benefits exceed $5,250 in a given tax year. In that case, the employer must include the excess amount in the employee’s gross income, subject to relevant business and income tax.
Both employers and employees should keep track of these benefits to ensure they are reported correctly. This is especially important for employees who change organizations within a given tax year, as the total assistance they receive can be at most $5,250, regardless of the employer paying it. Additionally, any “unused” amounts of the $5,250 annual limit cannot be carried over by the employer/employee to subsequent years or retroactively applied to previous years of employment.
Can Educational Assistance Be Used for Non-Employees?
Generally, educational assistance benefits are exclusively for employees. Benefits extended to spouses or dependents do not qualify under section 127 and must be included in the employee’s gross income unless they also qualify as employees.
How Do Employers Benefit From Offering These Programs?
Employers can deduct the costs of educational assistance up to the $5,250 limit per employee per year as a business expense. This helps employers support their employees’ pursuit of higher education and skill development while also benefiting from tax incentives. Education assistance initiatives can enhance the workforce’s expertise and knowledge, boost employee morale and productivity, and decrease staff turnover.
Recommended: How Student Loan Benefits Can Help Retain Employees
What Should Employers Include in an Educational Assistance Plan?
An effective educational assistance plan should clearly outline the eligibility criteria, types of benefits provided, conditions for receiving benefits, and procedures for claiming benefits. Employers may customize their plans to include provisions for part-time employees and/or prorate benefits based on employment tenure, or even grades received at course completion.
Here is an example plan document that outlines an Educational Assistance Program. Though it will have to be adapted to your organization’s unique needs and policies, this template can help you meet the written plan requirement.
The Takeaway
Educational assistance programs offer valuable benefits that significantly reduce the financial burden of furthering education. Both employers and employees stand to gain from well-structured programs that align with IRS guidelines. As these programs are subject to specific IRS rules and potential legislative changes, staying informed through reliable sources like IRS publications and updates is crucial for maximizing the benefits while remaining compliant.
For more detailed information or specific scenarios, visit the IRS website . You may also want to consult with a tax professional, who can provide guidance tailored to individual circumstances.
SoFi at Work can also help. We’re experts in the employee education assistance space. With SoFi at work, you can access platforms and information that will help build the benefits needed to create a successful and loyal workforce.
Products available from SoFi on the Dashboard may vary depending on your employer preferences.
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery, or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
Advisory tools and services are offered through SoFi Wealth LLC, an SEC-registered investment adviser. 234 1st Street San Francisco, CA 94105.
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.
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Thinking of making the Golden State your new home? California offers residents stunning natural landscapes, bustling metropolitan areas, and a thriving tech industry, making it a top destination for movers. Whether you’re exploring homes for sale in Los Angeles, considering renting a home in San Francisco, or touring apartments for rent in San Diego, here’s what you need to know before moving to California.
California at a glance
California provides a mix of natural beauty and urban life. From the breathtaking Yosemite National Park to the stunning beaches of Malibu, the state is perfect for both outdoor enthusiasts and city lovers. The largest cities in California, Los Angeles, San Francisco, and San Diego, are bustling hubs of activity. California’s economy is driven by technology, entertainment, agriculture, and manufacturing, with companies like Apple, Google, and Tesla headquartered here.
The state’s cultural scene includes vibrant music, arts, and culinary delights, while its strong educational institutions like Stanford and UC Berkeley, along with a robust job market, make it an attractive place to live. For those seeking affordability, cities like Sacramento and Fresno, offer more budget-friendly living options. Whether exploring the Pacific Coast Highway, hiking in the Sierra Nevada, or visiting the farmers’ markets in San Francisco, California is a great place to live.
1. The cost of living is higher than many states
The cost of living in California is notably high, with San Francisco being a prime example where living expenses are 18% higher than in other popular metros like Seattle. For instance, the median home sale price in San Francisco exceeds $1.4 million, while Sacramento sees a median price of $516,000. In terms of rent, the average monthly rent for a one-bedroom apartment in Los Angeles is approximately $2,653, compared to about $3,597 in San Francisco and $2,822 in San Diego. Everyday living expenses such as groceries, utilities, and transportation are also more expensive compared to national averages. However, there are more affordable cities in California, the more inland you go, where housing and daily expenses are significantly lower.
For those looking to call the Golden State home, it’s essential to consider the pros and cons of living in California to give you a better idea of what to expect.
2. Wine is a big deal in the state
California has an outstanding wine country renowned for its world-class vineyards and wine production. Napa Valley, known for its picturesque landscapes and prestigious wineries like Robert Mondavi and Opus One, attracts wine enthusiasts from across the globe. Sonoma County, with its diverse microclimates and acclaimed wineries such as Francis Ford Coppola Winery and Jordan Vineyard & Winery, further enhances California’s reputation as a premier destination for wine tourism.
Travel tip: To optimize your visit to Wine Country in California, it’s advisable to schedule appointments ahead at wineries, particularly during peak seasons like spring and fall. Planning your itinerary in advance and securing reservations for winery tours and tastings ensures you can enjoy a seamless experience at your preferred vineyards.
3. California has some of the highest taxes in the nation
California has some of the highest taxes in the country, including a top state income tax rate of 13.3%, the highest of any state. Additionally, the state’s sales tax averages around 8.85%, with some localities charging even higher rates. Property taxes, while not the highest in the nation, can still be substantial due to the high property values, especially in areas like the Bay Area and Los Angeles. It’s important to know these tax implications before deciding to move to California, as you’ll need to work these costs into your budget.
4. The technology sector is thriving in California
California is well-known for Silicon Valley, a vibrant hub of technology and innovation that fuels numerous high-tech jobs across the state. From tech giants like Apple in Cupertino, Google in Mountain View, to Facebook in Menlo Park, these companies are joined by a thriving startup scene with companies such as Airbnb and Uber originating here. This dynamic ecosystem drives advancements in computing, software development, artificial intelligence, and biotechnology, influencing industries globally and creating diverse career opportunities in California.
5. You’ll need to prepare for potential earthquakes
Living in California requires preparation for potential natural disasters. The state is seismically active, and being earthquake-ready involves having an emergency plan, securing heavy furniture, and keeping essential supplies like water and non-perishable food stocked. Familiarizing yourself with evacuation routes and understanding earthquake safety protocols are essential for residents to stay safe during seismic events.
6. The outdoor recreation opportunities are abundant
California offers abundant opportunities for outdoor recreation, catering to a wide range of interests. Hike among ancient redwoods in Muir Woods National Monument, surf the waves at renowned spots like Huntington Beach, explore the stark beauty of Death Valley National Park, or hit the slopes in Mammoth Lakes during winter. Whether you prefer biking along scenic coastal routes, camping in the Sierra Nevada, or kayaking in Lake Tahoe’s clear waters, California’s natural beauty provides endless adventures for outdoor enthusiasts year-round.
Insider scoop: If you’re heading to Malibu for surfing, Zuma Beach is an excellent choice to avoid crowds, especially for beginners and intermediate surfers. Plus, it’s famous as the filming location for Baywatch.
7. There are many educational institutions to choose from
California has a wealth of prestigious educational institutions, including the renowned University of California system and Stanford University. These institutions offer top-tier academic programs across various disciplines, attracting students and researchers from around the world. Whether you’re considering higher education opportunities or seeking excellent K-12 schools, California’s educational landscape is rich with options.
8. California deals with wildfire seasons
California experiences wildfire seasons, primarily during the dry summer and fall months, with peak activity from July through September. The state’s diverse terrain, including dense forests in the north and chaparral-covered hillsides in the south, is particularly susceptible to wildfires due to hot temperatures, low humidity, and occasional Santa Ana winds. It’s crucial for residents to stay informed about fire conditions, adhere to local fire safety regulations, and have evacuation plans ready.
9. You’ll find many pet-friendly establishments throughout the state
California is known for being exceptionally pet-friendly, with numerous amenities and accommodations catering to pets and their owners. Many cities boast extensive networks of dog parks, pet-friendly beaches like Carmel Beach and Huntington Dog Beach, and even restaurants and cafes. Additionally, the state hosts events such as pet parades and adoption fairs, reflecting its commitment to fostering a welcoming environment for pets.
Insider scoop: Some wineries have designated areas where well-behaved pets can accompany their owners during tastings, allowing both humans and pets to enjoy the scenic vineyard views together.
10. Drought is a significant concern in California
Drought is a significant and recurring concern in California, impacting various aspects of life across the state. In recent years, regions like the Central Valley and Southern California have faced severe water shortages, affecting agriculture, urban water supplies, and ecosystems. For instance, cities like Los Angeles and San Diego have implemented water conservation measures, while agricultural areas have struggled with reduced irrigation allocations. The state regularly encourages residents and businesses to conserve water through initiatives such as rebates for water-efficient appliances and landscaping.
11. California hosts well-known annual festivals
California hosts a plethora of festivals throughout the year, catering to diverse interests and cultural celebrations. From the iconic Coachella Valley Music and Arts Festival in Indio, which draws music enthusiasts from around the globe, to the vibrant San Francisco Pride Parade celebrating LGBTQ+ pride, the state offers something for everyone. Additionally, food lovers can indulge in events like the Gilroy Garlic Festival or the LA Food Fest, showcasing California’s rich culinary diversity.
12. People flock to the state’s national parks
California’s national parks are some of the most sought-out destinations in the U.S., renowned for their awe-inspiring landscapes and diverse ecosystems. Yosemite National Park, home to iconic landmarks like Half Dome and Bridalveil Fall, offers extensive hiking trails amidst towering sequoias and pristine alpine lakes. Joshua Tree National Park, famous for its surreal rock formations and the distinct Joshua trees, provides a playground for climbers and a prime spot for stargazing under its clear desert skies. These parks not only showcase California’s natural beauty but also serve as vital habitats for a variety of wildlife.
Travel tip: To hike one of California’s iconic trails, Half Dome, you’ll need to secure a permit. With only 225 permits available per day, it’s essential to plan well in advance. For more details, visit the National Park Service website.
13. California boasts an active lifestyle
California embraces an active lifestyle, offering residents abundant opportunities for outdoor activities and fitness. From surfing along the Pacific coast to hiking in the Sierra Nevada mountains, the state’s diverse geography encourages a wide range of physical pursuits year-round. Additionally, cities like Los Angeles and San Francisco promote fitness through numerous parks, bike lanes, and fitness studios, fostering a culture where staying active is both enjoyable and accessible.
14. California has some of the worst traffic in the nation
California grapples with some of the worst traffic congestion in the nation, particularly in major metropolitan areas like Los Angeles, San Francisco, and San Diego. Commuters often face gridlock on highways such as the I-405 in Los Angeles or the Bay Bridge in San Francisco during peak hours. The state’s high population density, extensive urban sprawl, and reliance on cars contribute to the challenging traffic conditions experienced by residents and visitors.
Methodology
Population data sourced from the United States Census Bureau, while median home sale prices, average monthly rent, and data on affordable and largest cities are sourced from Redfin.
The Producer Price Index (PPI) is certainly not in the same league as CPI when it comes to bond market impact, but there have been several notable reactions in the past year. It was a concern, then, to see core PPI come in 0.2 higher than expected and for last month to be revised 0.3 higher. But while there was an initially negative reaction in the bond market, it wasn’t big and it didn’t last long. The “why” has to do with the components of PPI that directly impact the more important consumer inflation metrics like the PCE price index coming out later this month. Simply put, the big beat in PPI was driven by categories that don’t translate to PCE.
If we took the worst levels of the spreads from 2023 and incorporated those today, mortgage rates would be 0.48% higher right now. While we are far from being average with the spreads, the fact that we have seen this improvement is a plus this year.
10-year yield and mortgage rates
Last week, inflation data and testimony from Federal Reserve President Jerome Powell were a plus for mortgage rates as the 10-year yield fell to the critical level of 4.20%. This has been a stubborn place to break lower, so the key for this week is to get follow-through bond buying after we close below 4.20%. If this doesn’t happen soon, we will need to wait for more economic data or a Fed talking point to push the 10-year yield lower.
Purchase application data
The last time we saw 12 weeks of positive trending purchase app growth was when mortgage rates reached 6%. Purchase apps have been positive for four out of the last five weeks and mortgage rates aren’t even near 6%. Now, context is critical because we are working from the lowest bar ever, so it doesn’t take much to move the needle higher with purchase apps, as the last five weeks have shown.
However, let’s keep an eye out on this story over the next six months because of what late 2022 and 2023 data has shown us: if the mortgage rates fall and we can get at least two to three months’ worth of positive data, it will show up in the future existing home sales report. Remember, purchase apps look out 30-90 days, so that data will hit the sales report later on.
Since mortgage rates started to fall in November 2023, we’ve seen 16 positive prints, 14 negative prints and two flat prints in the week-to-week data. However, as mortgage rates began to rise earlier this year, we observed a decline in demand. The year-to-date data for 2024 is still unfavorable, with 10 positive prints,14 negative prints and twoflat prints.
Weekly housing inventory data
This week’s data was hit with the July 4th bug. Especially if July 4th is on a Thursday or Friday, people tend to take a more extended vacation. So, I will not make any statements about the decline in inventory week to week, except that it’s been affected by the holiday and we should get back on trend next week.
Weekly inventory change (July 5-12): Inventory fell from 652,573 to 651,453
The same week last year (July 7-14): Inventory rose from 466,534 to 471,603
The all-time inventory bottom was in 2022 at 240,497
The yearly inventory peak for 2024 was 652,573
For some context, active listings for this week in 2015 were 1,197,439
New listings data
New listings data saw a much sharper decline than I had anticipated this week, but it was July 4th weekend so that I won’t make anything of it. However, I will keep an eye out here in the future weeks. The seasonal decline period is starting soon, so we should get accustomed to seeing a decline in new listing data as the year heads toward its end.
It is a bit shocking to me that new listings this week are lower than even last year: This is the lowest new listing week ever recorded. Here are the new listings for last week over the last several years:
2024: 56,638
2023: 57,304
2022: 71,790
Price-cut percentage
In an average year, one-third of all homes take a price cut — this is standard housing activity. As rates have stayed elevated, the price-cut percentage is higher than in the last two years, and certain pockets of the U.S. have higher inventory data than the national data.
A few weeks ago, on the HousingWire Daily podcast, I discussed that the price-growth data will cool down in the year’s second half. Here are the price-cut percentages for last week over the previous few years:
2024: 38%
2023: 33%
2022: 33%
Pending sales
Below is the Altos Research weekly pending contract data year-over-year to show real-time demand. With more sellers who are buyers, we have a tad more demand this year. These are live weekly contracts, compared to the purchase application data, which looks out to 30-90 days. And our weekly pending sales data accounts for contracts.
2024: 419,576
2023: 377,650
2022: 419,524
The week ahead: Powell talks again, plus retail sales and housing starts
Powell will speak again on Monday and a few Fed presidents will speak this week as well. I want to see if we get more dovish statements from other Fed presidents this week. Retail sales are on Tuesday and housing starts are on Wednesday. The big focus for housing starts data is if single-family permits keep falling, which isn’t bullish for construction labor going out. Also, we have the all-important jobless claims data on Thursday.
Average mortgage rates were mostly lower compared to a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed and jumbo loans each decreased, while rates for ARM loans rose.
Rates last updated July 12, 2024.
The rates listed above are marketplace averages based on the assumptions shown here. Actual rates displayed on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Friday, July 12th, 2024 at 7:30 a.m. ET.
Market mortgage rates constantly change as the economy ebbs and flows, new data releases and lenders decide how much risk they’re willing to tolerate on a given day.
Historical mortgage rates: How do today’s rates compare to years past?
Thirty-year fixed mortgage rates remain around 7 percent mostly due to inflation, which has run hotter than the Federal Reserve’s 2 percent target for some time now. Those higher prices have prompted the Fed to keep the federal funds rate elevated.
“Inflation data will be the catalyst for movement in mortgage rates this summer,” says Greg McBride, CFA, chief financial analyst for Bankrate.
The Fed’s rate doesn’t outright determine fixed mortgage rates, however. Rather, they increase or decrease with the 10-year Treasury yield, the effective yield rate on 10-year Treasury notes. The 10-year yield rises when there’s less demand for notes — and this tends to happen when investors feel confident in the economy, including monetary policy.
Still, real life doesn’t necessarily consider the Fed, inflation and yields. If you’re in a position to buy or sell a home now, it might be better to make a move than try to wait out the market. Wherever prevailing rates are, shop lenders to help uncover the best deal.
30-year mortgage rate falls, -0.14%
The average rate you’ll pay for a 30-year fixed mortgage today is 6.94 percent, down 14 basis points from a week ago. Last month on the 12th, the average rate on a 30-year fixed mortgage was higher, at 7.01 percent.
At the current average rate, you’ll pay $661.28 per month in principal and interest for every $100,000 you borrow. That’s $9.40 lower, compared with last week.
15-year mortgage rate declines, -0.12%
The average rate you’ll pay for a 15-year fixed mortgage is 6.41 percent, down 12 basis points since the same time last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $866 per $100,000 borrowed.
5/1 ARM rate moves up, +0.07%
The average rate on a 5/1 ARM is 6.59 percent, rising 7 basis points over the last week.
Monthly payments on a 5/1 ARM at 6.59 percent would cost about $638 for each $100,000 borrowed over the initial five years.
Jumbo loan interest rate retreats, -0.10%
The average rate you’ll pay for a jumbo mortgage is 7.04 percent, a decrease of 10 basis points since the same time last week. Last month on the 12th, jumbo mortgages’ average rate was greater than 7.04 at 7.15 percent.
At today’s average rate, you’ll pay principal and interest of $667.99 for every $100,000 you borrow. That’s down $6.74 from what it would have been last week.
30-year mortgage refinance trends down, -0.17%
The average 30-year fixed-refinance rate is 6.94 percent, down 17 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher at 7.01 percent.
At the current average rate, you’ll pay $661.28 per month in principal and interest for every $100,000 you borrow. That represents a decline of $11.43 over what it would have been last week.
When will mortgage rates go down?
Thirty-year mortgage rates could slip under 7 percent by end of year, according to Bankrate’s July 2024 forecast.
There won’t be a meaningful drop beyond that, however, if the economy continues its strong streak.
“Even if the Fed starts cutting rates this year, mortgage rates won’t get down to, or below, 6 percent unless there is a significant economic slowdown,” McBride says.
More on current mortgage rates
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
Lee Ann Reno, a magistrate judge in the U.S. District Court for the Northern District of Texas, has approved both requests.
TCB is seeking a partial summary judgment on the first count of its original court complaint, which alleges that Ginnie Mae violated the Administrative Procedures Act (APA) by extinguishing its first-priority liens over certain reverse mortgage collateral.
Ginnie Mae is seeking to move the case to a court in Dallas and away from its current Amarillo venue, contending that TCB violated a “forum selection clause” in its tail agreement with Reverse Mortgage Funding (RMF), the agreement at the center of the dispute.
The previous deadline for TCB to respond to the forum change motion was July 8, while Ginnie Mae was required to respond to the partial summary judgment ruling by July 18. In a previous filing, both sides contended that they did not have enough time to sufficiently respond to the claims of each, and Reno agreed.
“The parties assert that they request this extension ‘to ensure adequate time to review and respond to the motions and do not submit this request for an improper purpose or delay,’” the filing reads in part. “The parties further state that they ‘have conferred and neither party opposes this request.’”
The motion to transfer venues now has a deadline of July 22, while the motion for partial summary judgment was moved to Aug. 1. Any substantive additional progress in this case is unlikely to take place prior to the August deadline.
The case so far
TCB initially brought its suit against Ginnie Mae in October 2023, alleging the government-owned company that oversaw its mortgage-backed securities (MBS) program had “extinguished, in return for no consideration, TCB’s first priority lien on tens of millions of dollars in collateral stemming from the [FHA]-sponsored [HECM] program.”
This was after Ginnie Mae allegedly turned to TCB in an effort to avoid “a catastrophic disruption of the HECM program.” In return for lending money to RMF, TCB said it received a first priority lien “on certain HECM collateral.” The bank described this collateral as “critically important” since without it, the only collateral TCB could rely on was a bankrupt company in RMF.
In subsequent filings, Ginnie Mae denied the accusations beyond the material facts related to executed agreements between all parties and the regulations governing the HMBS program. While Ginnie Mae sought to have the case dismissed, the presiding judge allowed the bulk of the case to continue and dismissed only small portions of the initial complaint.
This is yet another component of the fallout from the collapse of RMF, which was the fifth-largest reverse mortgage lender in the U.S. at the time of its 2022 bankruptcy. The company’s failure ultimately required Ginnie Mae to step in and assume control over its servicing portfolio, which led to the dispute with TCB.
Resources needed as scrutiny mounts
Ginnie Mae, by its own admission, said that it requires additional resources to fully and adequately manage its portfolio of reverse mortgages. Data compiled by New View Advisors shows that while Finance of America’s HMBS portfolio recently surpassed the size of the former RMF portfolio, it still represents a sizable share of the total HMBS market despite not acting as an issuer in the program.
Recently, the Mortgage Bankers Association (MBA) and the National Reverse Mortgage Lenders Association (NRMLA) submitted a letter to congressional leaders urging them to endorse full funding for Ginnie Mae in order to ensure maximum liquidity for the government-backed corporation’s mortgage-backed securities issuers.
“Liquidity strains and balance sheet distortions present unique challenges to NRMLA’s HMBS issuer members,” Steve Irwin, president of NRMLA, said in a statement to HousingWire’s Reverse Mortgage Daily.
“With its limited resources, GNMA has been able to focus on these issues and has already provided significant relief to the HMBS Issuers. There are additional opportunities for GNMA to continue its strong work in the HMBS area, and they should be provided the requisite resources to ensure the further stabilization of the FHA-insured reverse mortgage marketplace.”
But Ginnie Mae is also under additional scrutiny for its handling of RMF. The U.S. Department of Housing and Urban Development (HUD) Office of the Inspector General (OIG) opened an inquiry into the handling of the RMF situation, and it also gained attention from an Indiana senator, who requested additional information from the company over the move.
Summer is heating up, and so are the introductory offers on eligible IHG Hotels credit cards.
From July 11 to Sept. 4, 2024, new applicants for the IHG One Rewards Premier Credit Card and the IHG One Rewards Traveler Credit Card can grab the following limited-time offers:
The new sign-up bonus on the IHG One Rewards Traveler Credit Card is a big increase over the previous offer of 80,000 points after spending $2,000 in three months. NerdWallet values IHG points at 0.8cent each, making this new offer worth around $800. That’s a massive boon for a card with a $0 annual fee.
The transition from a points-based sign-up bonus to free-night certificates on the $99-annual-fee IHG One Rewards Premier Credit Card is becoming more common among hotel credit cards. Each certificate can be used on a room worth up to 60,000 points per night, making the new offer worth up to 300,000 points at the high end — once again, a big increase from the card’s previous bonus of 140,000 bonus points after spending $3,000 on purchases in the first 3 months. Note that certificates expire 12 months from the date of issuance, so have a plan to use them before you apply for the card.
Other than the changes to the sign-up bonuses above, the benefits on the IHG consumer credit cards remain unchanged. New and existing cardholders will receive the following ongoing perks:
How the cards compare
IHG One Rewards Traveler Credit Card
on Chase’s website
IHG One Rewards Premier Credit Card
on Chase’s website
Annual fee
Rewards rate
Up to 17 points total per $1 spent at IHG (5 from card, 10 from loyalty program, 2 from automatic elite status).
3 points per $1 spent on monthly bills, gas stations and restaurants.
2 points per $1 spent on all other purchases.
Up to 26 points total per $1 spent at IHG (10 from card, 10 from loyalty program, 6 from automatic elite status).
5 points per $1 spent on travel, gas stations and restaurants.
3 points per $1 spent on all other purchases.
Other perks
Automatic Silver status.
Earn Gold status when you spend $20,000 or more on your card in a calendar year.
Fourth night free when redeeming points for four or more nights.
Automatic Platinum status.
Fourth night free when redeeming points for four or more nights.
Still not sure?
🤓Nerdy Tip
Points earned through the sign-up bonus on the IHG One Rewards Traveler Credit Card can be used with the fourth-night-free benefit when redeeming points for four or more nights. However, free-night certificates earned with the IHG One Rewards Premier Credit Card can not be used for a free fourth night.
Purchase activity picked up slightly, while refinance applications decreased for the fourth consecutive week. The seasonally adjusted purchase index increased by 1% from the previous week, although it remained 13% lower than the same period last year. Refinance applications, on the other hand, continued their downward trend for the fourth consecutive week, with a 2% … [Read more…]