Bond traders were not ready for this, and the 10-year yield shot up higher, along with mortgage rates. As of this second, we are three basis points above my peak 2024 yield forecast call of 4.25%.
I have been tracking data for a long time and have never seen a divergence in the report like I see today. We all know the shelter rent lag in the data, but this is different — this is a straightforward one-month adjustment issue as the breakaway from OER is massive compared to the Rent of Primary Residence in the U.S. city average.
On Monday’s HousingWire Daily podcast I asked the question of which we will see first: 8% mortgage rates or 6% mortgage rates? I firmly believe that the Fed hasn’t pivoted. I believe the Fed has a COVID-19 housing economic policy to ensure that housing stays depressed because of the fear of a return to the 1970s, which had a housing boom, for those who don’t remember.
From the CPI report: The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in January on a seasonally adjusted basis, after rising 0.2 percent in December, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all-items index increased 3.1 percent before seasonal adjustment.
Of course, the Federal Reserve focuses on core inflation, and even with the inflated shelter index, we have made a good progress on core Inflation year-over-year.
Even the shelter inflation index — the biggest driver of core Inflation as it is 44% of the CPI index — is slowly heading in the right direction. I believe everyone understands that this CPI report looks a bit fishy, but bond traders don’t care; they were not prepared for this, so they sell first and send yields and mortgage rates higher. The question is: Does the Fed know enough to see what is wrong in this report? That is a good question.
On a year-over-year basis, the OER inflation data is making progress, but it’s lagging the reality of the current data. Mind that when I talk about rent disinflation, the big push is apartments. Single-family rents are stabilizing and holding up well. However, apartments are having pricing issues, meaning more supply is coming online, which will halt production of many more apartments until the supply and demand equilibrium can stabilize to where it makes sense to spend money to build more apartments.
What does this mean for mortgage rates? Well, they’re going up today, and if bond traders feel the itch to start shorting the bond market again and push yields higher as they did last year, this again puts more pressure on the housing market, which is already in the third year of great recession lows in demand.
The one thing that is positive now is that when the 10-year yield headed toward 5% and mortgage rates were at 8%, the Fed called this a very restrictive policy, meaning that it wasn’t their intent to have yields this high. Now that PCE inflation is running below 2% on the three and six-month data pool, we shall see if they hold to that view since inflation is much lower in 2024 than in 2023.
However, as you can see, I don’t like playing with fire when you don’t need to risk being burned. Since the Fed hasn’t pivoted, they’re playing with fire when they don’t need to. I may be one of the last people on the planet who believes the Fed hasn’t pivoted, but today shows why I have taken that view.
Again, the progress in inflation is here, but as I have believed for a long time, the labor market is the key to mortgage rates, bond yields and the Fed’s actions. If jobless claims were running at 300,000, today’s data wouldn’t matter and the 10-year yield would have already been lower. Remember, when it comes to rock, paper, scissors, labor always beats inflation, and it’s all about jobless claims data.
The US housing market should experience a warm return this spring, thanks to calming economic data.
The average rate for a 30-year loan declined to 6.63% from 6.69% the week prior, according to Freddie Mac on Thursday. Mortgage rates dropped for the second time in 2024 and are expected to retreat further as inflation moderates, which could help spark a housing rebound.
As most indicators point to interest rate cuts this coming year, housing experts are predicting a busier spring buying season starting in the next couple of months as more supply and demand return to the housing market thanks to the mortgage rate drop.
“So long as core inflation and economic activity continue to moderate, mortgage rates aren’t expected to rise further,” said Orphe Divounguy, senior macroeconomist at Zillow. “If layoffs remain low, and mortgage rates ease, housing market activity should rebound modestly this spring — meaning more listings coming on the market and more sales.”
Read more: Mortgage rates below 7% — is this a good time to buy a house?
Mortgage applications fall
The likelihood of a bustling spring housing market will depend heavily on where mortgage rates head next. Homebuyers have proven again they are rate-sensitive amidst today’s elevated home prices. After last week’s slight rate increase, the volume of mortgage application activity retracted 7.2% on a weekly basis, according to an application survey tracked by the Mortgage Bankers Association (MBA) for the week ending Jan. 26.
“Low existing housing supply is limiting options for prospective buyers and is keeping home price growth elevated, resulting in a one-two punch that continues to constrain home purchase activity,” said Joel Kan, MBA’s deputy chief economist.
Affordability challenges also worsened due to last week’s rate bump. The average loan size for purchase applications increased to $444,100, the largest since May 2022, according to the MBA.
Low application rates and hardship don’t mean homebuyers have disappeared, though. Redfin’s Homebuyer Demand Index — measuring buyers’ requests for home tours and other buying services on Redfin — showed that interest increased 6% over the last seven days in the week ending Jan. 28.
“I believe this year’s market will launch in the spring, once 6% rates are even more entrenched in buyers’ psyches, and more homeowners list their houses,” said Hal Bennett, a Redfin Premier agent.
Wall Street banks and industry experts expect cuts. Wells Fargo said in its 2024 annual outlook that the economy will moderate by mid-2024, prompting the Fed to cut rates by 225 basis points by early 2025. Housing experts at Fannie Mae are predicting mortgage rates will decline below 6% by the end of 2024, leveling off at about 5.8%.
During yesterday’s Federal Open Market Committee meeting, the Fed announced it is keeping its benchmark rate steady in an effort to suppress inflation to 2%. Even so, Fed Chair Jerome Powell expressed optimism that rates have peaked and a cut could come soon. But any drop is not a guarantee.
“Inflation is still too high, ongoing progress in bringing it down is not assured, and the path forward is uncertain,” Powell said during the FOMC conference.
Read more: What the Fed rate decision means for bank accounts, CDs, loans, and credit cards
The latest Personal Consumption Expenditures (PCE) index — the Fed’s preferred inflation measurement — increased 2.6% annually in December, falling below 3% for the first time since March 2021. More importantly, though, is that an annualized PCE using data from the prior three to six months is now below 2%.
“The lower inflation readings over the second half of last year are welcome,” Powell added, “but we will need to see continuing evidence to build confidence that inflation is moving down sustainably toward our goal.”
Rebecca Chen is a reporter for Yahoo Finance and previously worked as an investment tax certified public accountant (CPA).
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Guild Mortgage has struck a deal to acquire retail lending rival Academy Mortgage Corp.,which could result in an additional 600-plus loan officers for Guild across the country, multiple sources told HousingWire.
During an all-hands call Tuesday morning, Academy’s leadership informed employees about the M&A deal. Academy CEO Adam Kessler told staffers that he had been seeking either private capital or a buyer due to the challenging mortgage landscape. He said that Guild was a good fit to acquire the company, according to staffers who attended the Tuesday morning call.
Separate calls occurred after the meeting; one group was informed that their positions were being terminated, while the other were given details of a transition to Guild.
Representatives at both companies did not immediately reply to a request for comments.
Academy’s sales workforce and management will receive job offers and work as a division of Guild. Most operations and recruiting staff will not be joining the acquirer but will stay employed until April 15, when the deal is expected to close, sources said.
In a statement issued after this story was first published, a spokesperson for Guild said Academy’s operations staff and recruiters “are mostly joining Guild” and the “deal will close in the first quarter.”
“Academy boasts approximately 200 branches and more than 1,000 employees who will transition to Guild, including more than 600 licensed mortgage originators,” the companies said in a news release.
Guild believes it can add to acquired companies by reducing back-office costs, CEO Terry Schmidt recently told HousingWire. “If it’s a smaller organization that maybe can’t afford the back office any longer, maybe that’s [M&As] a value added to them,” Schmidt said.
Founded in 1988, Academy originated $5 billion in mortgages over the year ending in January, per mortgage tech platform Modex. Of the total, 61% were conventional loans and 80% were purchase loans. During this period, 15% of its volume was in Washington, 13% in Utah and 7.6% in Idaho.
Academy was not on the Inside Mortgage Finance (IMF) list of the 100 owned mortgage servicing firms as of third-quarter 2023 (No. 100, Primary Residential Mortgage in Utah, had $9.47 billion in MSRs).
Meanwhile, Guild’s volume reached $12.85 billion in the same period. It also focused on conventional loans (57.8% of its total) and purchases (81%), according to Modex data. But the company’s leading states in terms of origination were California (9.8%), Texas (9.4%) and Washington (9.3%).
Guild is also one of the country’s largest servicers, with $84 billion in MSRs as of first-quarter 2024, per IMF.
According to Guild, “Academy’s loan volume represents an approximate 25% increase in annual origination volume for Guild, based on results from both organizations through the third quarter of 2023.”
It added that, “The combined company would be the 8th largest nonbank retail lender in the country. Guild is currently the 10th largest nonbank retail lender.”
Publicly traded Guild has an ambitious plan of becoming a top 10 lender in the markets in which it has a presence. In 2023, it acquired Legacy Mortgagein February, Cherry Creek Mortgage in March and First Centennial Mortgage in August.
This story was updated Tuesday afternoon to include comments from Guild Mortgage.
Inside: Embark on a profitable journey with our guide on starting a bookkeeping business. Find the steps on how to become a bookkeeper and find success.
Starting a bookkeeping business from scratch can be an exciting yet nerve-wracking venture.
For many budding entrepreneurs, the formidable task of setting up a business adds a mix of anxiety and anticipation. The initial trepidation often stems from dealing with the unknowns of a new venture and the pressure of ensuring meticulous financial management of someone else’s finances.
However, with thorough planning and an understanding of the essential steps, such as crafting a solid business plan and obtaining the necessary certifications, these nerves can be managed.
By embracing your entrepreneurial spirit and equipping yourself with the right knowledge, you can lay a strong foundation for a successful bookkeeping business.
Plus it is easier to get started than you thought…
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What is a bookkeeping business?
At its core, a bookkeeping business manages the financial records of other businesses. They ensure accuracy, track receipts and expenses, and prepare financial statements – the financial bedrock upon which enterprises stand.
With an emphasis on accuracy and organization, they are responsible for keeping the financial data up to date and available for strategic decisions.
For many, this is a popular way to make money online.
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Bookkeeping is the most stable, reliable & simple business to own. This is how to make a realistic income -either part-time or full-time.
Find out TODAY if this is THE business you’ve been looking for.
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First Steps to Starting a Bookkeeping Business
Craft a Comprehensive Business Plan for Success
Your roadmap to success begins with a business plan. This document is crucial—it outlines your vision, goals, unique value proposition, target market, competitive landscape, marketing strategies, and detailed financial forecasts. Think of it as your strategic compass guiding you from startup to growth.
This takes your side hustle to an actual living thriving business.
Remember, your business plan is a living document. You must regularly review and update your business plan will help you stay on track toward your business objectives and adjust course as necessary to meet new challenges or opportunities.
Acquire Essential Certifications and Training
By obtaining the right certifications and training, you not only perfect your craft but also send a message of reliability and professionalism to prospective clients. While this may require an investment of time and resources, the credibility and expertise you gain are invaluable assets for your bookkeeping business.
Select bookkeeping courses that cover crucial topics such as accounting principles, financial statements, tax preparation, and accounting software. This education will deepen your understanding and sharpen your skills.
Stay updated with continuing professional education (CPE) credits to keep your certifications active and your knowledge fresh.
Familiarize yourself with popular bookkeeping software that you’ll use day-to-day. Being proficient in these tools will increase your efficiency and accuracy—qualities clients highly value.
Once certified, don’t forget to prominently display your credentials on your website and marketing materials. This can significantly bolster potential clients’ trust in your abilities and help establish your reputation as a qualified bookkeeping professional.
Bookkeepers.com Online Courses
Learn what you need to start your very own virtual bookkeeping business.
An overview of the bookkeeping business so you can see if it is right for you.
The tools you need to “wow” clients and get paid for your services and
How to create a steady stream of new clients without the need to “sell” yourself.
Learn More
Legal Considerations and Compliance
Setting the legal foundation for your bookkeeping business is not just a formality—it’s about protecting your operations and establishing credibility.
Register Your Business and Secure the Necessary Permits
Let’s look at the essential steps to ensure your business is registered correctly and fully compliant with regulatory requirements.
Choose a Business Structure: Decide whether an LLC, sole proprietorship, partnership, or corporation best suits your needs.
Register Your Business Name: This is a crucial branding element. Check for name availability and register it with the appropriate state agency, ensuring it’s unique and resonates with your target market.
Obtain an EIN: If you’re in the U.S., you’ll need an Employer Identification Number (EIN) for tax purposes, especially if you plan to hire employees. This number is also often required to open a business bank account and apply for business licenses.
Apply for Licenses and Permits: Depending on your location and the structure of your business, you may need various licenses and permits. Check local and state regulations to ensure you meet all legal requirements.
Register for State Taxes: If applicable, register for your state’s tax structure. This may include sales tax, unemployment insurance tax, and other business-related taxes.
Comply with Local Regulations: Ensure you’re familiar with local zoning laws if operating from home, and obtain a Certificate of Occupancy if required. If you’re part of a homeowners’ association, review any stipulations they might have on home-based businesses.
Understand Ongoing Compliance: Be aware of annual filings, renewals for licenses and permits, and other regulatory commitments to maintain compliance.
By being diligent with these legal prerequisites, you’re not just following the rules—you’re also sending a clear message about your professionalism and attention to detail.
Protect Your Endeavors with the Right Insurance
Insurance is the safety net that can save your bookkeeping business from unexpected financial challenges. It’s not about expecting the worst; it’s about being prepared for any situation that could undermine the stability and reputation of your business.
General Liability Insurance: This covers a broad range of issues, including bodily injury or property damage claims made by others.
Cyber Liability Insurance: As a bookkeeper dealing with sensitive data, you’ll want protection against cyber threats and data breaches.
Property Insurance: If you have a physical office or own valuable equipment, property insurance can cover losses from events like fire or theft.
By integrating the right insurance policies into your business strategy, you set up a protective fortress around the hard work and dedication you put into your bookkeeping business. Insurance should not be perceived as an unnecessary expense but rather as a prudent investment in your business’s longevity and reputation.
Setting Up Shop
Establishing a Home Office vs. Renting Space
Choosing the right environment for your bookkeeping business is a balancing act between professionalism, cost-effectiveness, and personal working style. Whether you decide on a home office or opt for a rented space, the decision will significantly impact your operations.
Home Office Advantages
Renting Space Advantages
Cost Savings: Eliminate commuting costs and monthly rent, channeling those savings back into your business.
Professionalism: A commercial office can provide a more professional setting for client meetings and create a clear boundary between work and home life.
Convenience: Enjoy the flexibility of setting your own hours and working in a stress-free environment.
Networking Opportunities: Proximity to other businesses in shared office spaces can foster relationships and potential client referrals.
Tax Deductions: You may be eligible for home office tax deductions, saving you money during tax season.
Amenities: Rented spaces often come with value-added services like receptionists or conference rooms.
Home Office Disadvantages
Renting Space Disadvantages
Distractions: Domestic life can disrupt your work, impacting productivity.
Overhead Costs: Monthly rent and utility bills will add to your business expenses.
Professional Image: Having a dedicated business address and separate workspace can often project a more professional image to clients.
Long-term Commitments: Leases typically require a long-term commitment that may be risky if your business circumstances change.
Ultimately, the decision depends on the nature of your clientele, your personal work preferences, and your budget. Also, this is great for a stay at home mom to make money.
Many bookkeepers find success starting with a home office and transitioning to rented space as the business expands. Others may find that a small rented office fits their needs right from the onset, or that a virtual office setup provides the perfect middle ground.
Selecting State-of-the-Art Bookkeeping Software
With the right bookkeeping software, you can streamline your operations, foster transparency with clients, and confidently tackle complex financial scenarios.
Adopting top-notch software will serve as both a foundation and a catalyst for your bookkeeping business, ensuring you remain competitive and responsive in a rapidly evolving industry.
Look into popular bookkeeping software such as QuickBooks Online, Xero, FreshBooks, and MYOB. Compare them based on features, ease of use, scalability, and customer support.
By taking the time to carefully weigh these factors, you will be better positioned to select bookkeeping software that not only meets your current needs but also supports your business as it expands.
Financial Foundations for Your Firm
Unravel Funding Options and Small Business Loans
Before seeking funding, calculate your startup costs including equipment, software subscriptions, legal fees, marketing, and initial operating expenses. This will help you understand how much capital you need to secure.
Typically, you should be able to start your bookkeeping business with little investment and add additional expenses as you grow.
If needed, there are a variety of funding sources available for new businesses. Research options like traditional bank loans, credit unions, Small Business Administration (SBA) loans, online lenders, and crowdfunding. When applying for loans or pitching to investors, a comprehensive business plan is essential. It should outline your business concept, financial projections, and growth strategy to demonstrate the viability and potential profitability of your bookkeeping business.
Smart Money Management from the Start
Establishing smart money management practices from the very inception is the same as being financially sound with your personal finances.
Open a Dedicated Business Bank Account: Keep your personal and business finances separate. This is fundamental for accurate bookkeeping and simplifies your tax situation come year-end.
Start With a Budget: Even before your first client, create a realistic budget for your business. Know the costs of all aspects, including marketing, equipment, insurance, and any other operational expenses. This will help prevent overspending and ensure your resources are allocated effectively.
Use the Profit First Formula: This simple formula will help you to pay yourself as well as have enough money for operational expenses and to pay your self-employment taxes.
By establishing and maintaining these smart money management practices from the outset, you’re not just safeguarding your bookkeeping business against common financial pitfalls—you’re also building a foundation for a prosperous financial future.
Marketing Your Bookkeeper Business
Digital Presence: Creating a Website That Converts
In today’s digital-first world, your website often makes the first impression for your bookkeeping business. It’s not just an online brochure; it’s a crucial tool engineered to turn visitors into leads and leads into loyal clients.
User-Friendly Design: Your website should be easy to navigate with a clean layout that directs visitors naturally from one section to the next. Prioritize quick load times and mobile responsiveness with Kadence to cater to all potential clients.
Clear Value Proposition: Immediately communicate what you offer and why a potential client should choose your bookkeeping services. Highlight your unique selling points front and center on the homepage.
Strong Call-to-Actions (CTAs): Use compelling CTAs to guide visitors towards taking action, whether that’s contacting you, scheduling a consultation, or signing up for your newsletter. Make it easy for them to engage with you.
Client Testimonials and Case Studies: Social proof can be incredibly persuasive. Showcase positive reviews, client testimonials, and case studies to build trust and credibility with prospective clients.
With a well-crafted website, your bookkeeping business demonstrates its expertise and readiness to cater to client needs, no matter where they are in their financial journey.
Networking and Navigating Social Media Strategies
Building a robust network and mastering social media can turbocharge your bookkeeping business’s growth. It positions you not just as a service provider, but as a thought leader in your field.
Identify the Right Platforms: Choose one or two social media platforms where your target audience is most active. LinkedIn, for instance, is a goldmine for professional networking, while Instagram can showcase your brand’s personality.
Create Valuable Content: Share content that resonates with your audience — tips to manage business finances, tax updates, or insights into bookkeeping trends. This positions you as an expert and invites engagement.
Engage Actively: Don’t just post and disappear; interact with your followers. Answer questions, join discussions, and show appreciation for their engagement. Building relationships is key to networking success.
Leverage Professional Groups and Forums: Beyond your own social channels, be active in online groups or forums related to bookkeeping and your clients’ industries to expand your visibility and establish credibility.
Your network and social media are not just channels for promoting your services; they’re platforms for sharing your expertise, engaging with peers and potential clients, and building a community around your bookkeeping brand.
Bookkeeping Startup Pricing, Clients, and Growth
Determining Competitive Rates for Your Services
Setting competitive, yet fair pricing for your bookkeeping services is a balancing act that ensures value for your clients and viability for your business.
Let’s explore how to establish a rate structure that meets the market demands and supports your financial goals.
Market Research: Begin by understanding what other bookkeepers in your area or within your niche are charging. This insight will help you benchmark your rates competitively. Keep in mind factors like experience, specialization, and location.
Value Your Expertise: Assess your qualifications, experience, and the quality of services you offer. Clients are willing to pay for the value you bring to their business, so price your services accordingly.
Consider Your Costs: Ensure your rates cover your expenses, including software subscriptions, continuing education, insurance, and taxes, while also leaving room for profit.
Pricing Models: Decide whether you’ll charge hourly, offer flat-fee packages, or adopt a value-based pricing model. Each model has its advantages and can be chosen based on the type of service or client preferences.
Communicate Your Pricing Clearly: Be transparent with clients about your rates. Clear communication prevents misunderstandings and builds trust from the outset. [Placeholder for sample pricing page]
Within your pricing strategy, consider the lifetime value of client relationships and the potential for added services down the line.
How will you find clients for your bookkeeping business?
Finding clients is the engine that powers your bookkeeping business and your income. With a strategic combination of diligent networking, tactical marketing, and leveraging existing relationships, you can start building your client base.
Utilize Online Platforms: Websites like Upwork, Fiverr, and LinkedIn can connect you with businesses looking for bookkeeping services.
Local Business Outreach: Approach local businesses directly. Offer to discuss how your bookkeeping services can alleviate their financial stress and add value to their operations.
Referral Program: Encourage word-of-mouth by setting up a referral program. Incentivize your current clients or network to refer others to you.
Social Media and Content Marketing: Create and share engaging content on your social media profiles to build brand awareness.
Community Involvement: Join local business associations, attend chamber of commerce events, or contribute to community projects. These can lead to connections and opportunities.
Offer Free Workshops or Webinars: By providing value upfront through informative sessions on bookkeeping and financial management, you can attract potential clients who are interested in improving their business finances. Also, you can partner with other professionals.
Professional Partnerships: Build relationships with accountants, lawyers, and business consultants who might not offer bookkeeping services but can refer their clients to you.
With a consistent and strategic approach, you can attract and retain the clients that are the best fit for your business, ultimately building a robust client portfolio. Remember, it’s not just about finding any clients—it’s about finding the right clients who treasure you.
Discovering and Retaining Your Ideal Clientele
Attracting clients is one feat, but discovering and retaining those who are the perfect fit for your bookkeeping business is where the real growth happens.
Offer Customized Solutions: Set yourself apart by tailoring your services to meet the specific needs of your clients. Show that you understand their industry and are invested in their success.
Provide Exceptional Service: Consistently deliver high-quality work, be responsive, and proactively address your clients’ needs. Clients will stay with a bookkeeper who goes above and beyond.
Host Client Appreciation Events: Small gestures of appreciation or exclusive events can strengthen business relationships and foster client loyalty.
Stay on Top of Industry Trends: Being knowledgeable about your clients’ industries can make you indispensable. Offer insights that can help them stay ahead of the curve.
Stay Ahead in the Bookkeeping Scene
Continuous Learning and Leveraging Industry Trends
The bookkeeping industry doesn’t stand still, and neither should you. Continuous learning keeps you at the forefront of evolving practices, ensuring your services remain relevant and your advice sound.
Keep Abreast of Regulatory Changes: Tax laws, financial regulations, and compliance standards can affect your clients; stay updated through webinars, online courses, and industry news.
Embrace Technological Innovations: New software and tools can streamline bookkeeping tasks. Be open to adopting tech that can improve your efficiency and the services you provide.
Participate in Professional Development: Attend workshops, seminars, and conferences geared toward bookkeeping professionals. Networking with peers can also uncover new trends and techniques.
By maintaining a commitment to continuous learning, you not only improve your own skillset but also enhance the overall value of your bookkeeping services.
Join Professional Associations for Peer Support
Being part of a professional association offers more than just credentials; it’s a direct line to a community of peers who can share insights, resources, and support as you build and grow your bookkeeping business.
By joining professional associations such as the American Institute of Professional Bookkeepers (AIPB) or the National Association of Certified Public Bookkeepers (NACPB), you demonstrate a commitment to professionalism and continuous improvement. These affiliations provide a wealth of resources to support you in delivering high-quality services and growing a thriving bookkeeping business.
Plus you can take advantage of seminars, webinars, and certification courses offered by associations to further your education and maintain any required continuing education credits.
Bookkeepers.com Online Courses
Learn what you need to start your very own virtual bookkeeping business.
An overview of the bookkeeping business so you can see if it is right for you.
The tools you need to “wow” clients and get paid for your services and
How to create a steady stream of new clients without the need to “sell” yourself.
Frequently Asked Questions (FAQs)
Yes, a bookkeeping business can certainly be profitable. It offers a low overhead cost model, recurring revenue opportunities through ongoing client relationships, and the potential to scale services.
With diligent financial management and strategic growth, profitability can be substantial.
While a degree is beneficial for deep knowledge, it’s not mandatory. Certification and practical experience can often suffice in starting a successful bookkeeping business.
In fact, this is one of the best low stress jobs without a degree.
Begin by gaining an understanding of bookkeeping principles, getting certified, investing in software, and slowly building up your clientele with strategic marketing and networking.
Ready to Open Bookkeeping Business?
Starting your own bookkeeping business can be a fruitful endeavor with the right preparation and education.
This guide outlines the key steps and provides direction on how to start a bookkeeping business, ensuring you cover all essential elements for a successful launch. With focus and attention to these structured steps, you’ll be well on your way to establishing a thriving bookkeeping business.
Still on the fence? Check out this free bookkeeping webinar to learn more.
With the right preparation, tools, and mindset, you can launch a thriving venture that supports businesses in their financial journey while growing your own entrepreneurial dreams.
Embrace the adventure—your future in finance awaits!
Just remember if you are looking for ways to make money fast, this one comes with patience and perseverance to make things happen.
Earn Extra Income with Bookkeeping
Bookkeeping is the most stable, reliable & simple business to own. This is how to make a realistic income -either part-time or full-time.
Find out TODAY if this is THE business you’ve been looking for.
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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!
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Woodwell explained that such extensions and modifications had allowed the CRE mortgages to mature from $659 billion to $929 billion. He added that commercial mortgages had the tendency to be long-lived with maturities spreading out over several years. “Volatility and uncertainty around interest rates, a lack of clarity on property values, and questions about some … [Read more…]
A number of mortgage rates crept upward over the last seven days. The average 15-year fixed and 30-year fixed mortgage rates both inched upward. At the same time, average rates for 5/1 adjustable-rate mortgages remained unchanged.
30-year fixed mortgage: 7.10%
15-year fixed mortgage: 6.52%
5/1 adjustable-rate mortgage: 6.11%
High mortgage rates, expensive home prices and tight inventory kept homebuying out of reach for many last year. The current housing market won’t recover overnight, but the good news is that mortgage rates are projected to move lower in the coming months.
“Housing market activity has been so depressed that it wouldn’t take much for 2024 to be better than 2023,” says Matt Graham of Mortgage News Daily. “Whether that means a ‘return to balance’ really depends on how we define balance.”
Mortgage rates change every day. Experts recommend shopping around to make sure you’re getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET’s partner lenders.
About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.
Today’s mortgage rates
If you’re in the market for a home, check out how today’s mortgage rates compare to last week’s. We use rates collected by Bankrate to track daily mortgage rate trends. This table summarizes the average rates offered by lenders across the US:
Current average mortgage interest rates
Loan type
Interest rate
A week ago
Change
30-year fixed rate
7.10%
6.96%
+0.14
15-year fixed rate
6.52%
6.40%
+0.12
30-year jumbo mortgage rate
7.16%
7.00%
+0.16
30-year mortgage refinance rate
7.16%
7.08%
+0.08
Rates as of Feb. 8, 2024
Mortgage rate forecasts from experts
High inflation and the Federal Reserve’s aggressive interest rate hikes drove up mortgage rates over the last several years. With inflation now decelerating, the Fed is positioning itself to make its first interest rate cut, though that may still be several months away.
While mortgage forecasters base their projections on different data, most experts and market watchers predict rates will move toward 6% or lower by the end of 2024. Here’s a look at where some major housing authorities expect average mortgage rates to land.
What are mortgage rates impacted by?
While it’s important to monitor mortgage rates if you’re shopping for a home, remember that no one has a crystal ball. It’s impossible to time the mortgage market, and rates will always have some level of volatility because so many factors are at play.
“Mortgage rates tend to follow long-date Treasury yields, a function of current inflation and economic growth as well as expectations about future economic conditions,” says Orphe Divounguy, senior macroeconomist at Zillow Home Loans.
Here are the factors that influence the average rates on home loans.
Federal Reserve monetary policy: The nation’s central bank doesn’t set interest rates, but when it adjusts the federal funds rate, mortgages tend to go in the same direction.
Inflation: Mortgage rates tend to increase during high inflation. Lenders usually set higher interest rates on loans to compensate for the loss of purchasing power.
The bond market: Mortgage lenders often use long-term bond yields, like the 10-Year Treasury, as a benchmark to set interest rates on home loans. When yields rise, mortgage rates typically increase.
Geopolitical events: World events, such as elections, pandemics or economic crises, can also affect home loan rates, particularly when global financial markets face uncertainty.
Other economic factors: The bond market, employment data, investor confidence and housing market trends, such as supply and demand, can also affect the direction of mortgage rates.
This graph shows the fluctuation of mortgage rates from the start of the pandemic to the end of last year:
What to know before choosing a mortgage
When picking a mortgage, consider the loan term, or payment schedule. The most common mortgage terms are 15 and 30 years, although 10-, 20- and 40-year mortgages also exist. You’ll also need to choose between a fixed-rate mortgage, where the interest rate is set for the duration of the loan, and an adjustable-rate mortgage. With an adjustable-rate mortgage, the interest rate is only fixed for a certain amount of time (commonly five, seven or 10 years), after which the rate adjusts annually based on the market’s current interest rate. Fixed-rate mortgages offer more stability and are a better option if you plan to live in a home in the long term, but adjustable-rate mortgages may offer lower interest rates upfront.
30-year fixed-rate mortgages
The 30-year fixed-mortgage rate average is 7.10%, which is a growth of 14 basis points from seven days ago. (A basis point is equivalent to 0.01%.) A 30-year fixed mortgage is the most common loan term. It will often have a higher interest rate than a 15-year mortgage, but you’ll have a lower monthly payment.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 6.52%, which is an increase of 12 basis points from seven days ago. Though you’ll have a bigger monthly payment than a 30-year fixed mortgage, a 15-year loan usually comes with a lower interest rate, allowing you to pay less interest in the long run and pay off your mortgage sooner.
5/1 adjustable-rate mortgages
A 5/1 ARM has an average rate of 6.11%, the same rate compared to last week. You’ll typically get a lower introductory interest rate with a 5/1 ARM in the first five years of the mortgage. But you could pay more after that period, depending on how the rate adjusts annually. If you plan to sell or refinance your house within five years, an ARM could be a good option.
Calculate your monthly mortgage payment
Getting a mortgage should always depend on your financial situation and long-term goals. The most important thing is to make a budget and try to stay within your means. CNET’s mortgage calculator below can help homebuyers prepare for monthly mortgage payments.
How to get the lowest mortgage rates
Though mortgage rates and home prices are high, the housing market won’t be unaffordable forever. It’s always a good time to save for a down payment and improve your credit score to help you secure a competitive mortgage rate when the time is right.
Save for a bigger down payment: Though a 20% down payment isn’t required, a larger upfront payment means taking out a smaller mortgage, which will help you save in interest.
Boost your credit score: You can qualify for a conventional mortgage with a 620 credit score, but a higher score of at least 740 will get you better rates.
Pay off debt: Experts recommend a debt-to-income ratio of 36% or less to help you qualify for the best rates. Not carrying other debt will put you in a better position to handle your monthly payments.
Research loans and assistance: Government-sponsored loans have more flexible borrowing requirements than conventional loans. Some government-sponsored or private programs can also help with your down payment and closing costs.
Shop around for lenders: Researching and comparing multiple loan offers from different lenders can help you secure the lowest mortgage rate for your situation.
No Way to Know What CPI Looks Like Until We See It
By:
Matthew Graham
Mon, Feb 12 2024, 3:14 PM
No Way to Know What CPI Looks Like Until We See It
Monday was very much a placeholder in the grand scheme. The same could be said for most of last week as well. As the Fed and the market wait to refine their sense of the rate trajectory, there are only so many reports capable of setting the tone for weeks on end. CPI is one of them and tomorrow’s installment will be the first true big ticket data since the jobs report. It’s always tempting to imagine that there’s some way to reliably predict a slightly stronger or weaker result, but that same sentiment is shared by many other market participants and professional forecasters. The net effect is a market that’s priced to perfection based on the forecast consensus. Translation: it’s anyone’s game on Tuesday morning. We know the reaction could be big. We do not know the direction.
10:09 AM
No data or market movers so far. MBS up 1 tick (0.03). 10yr up 0.4bps at 4.181.
11:58 AM
Some weakness into 11am, but stabilizing now. MBS and Treasuries both right in line with last update.
02:27 PM
Gains into 2pm and pulling back a bit now. MBS up 3 ticks (.09) and 10yr down 1.1bps at 4.166
Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.
For the first time since Fannie Mae began its national housing survey (in 2010), a larger share of consumers believe mortgage rates will decrease over the next year, rather than increase.
WASHINGTON – Fannie Mae said increased confidence in job security and anticipated mortgage rate reductions have driven its Home Purchase Sentiment Index (HPSI) up by 3.5 points in January to 70.7, its highest level of optimism since March 2022.
In January, 82% of consumers said they are not concerned about losing their job in the next 12 months, up from 75% the previous month. Additionally, an all-time survey-high 36% of respondents indicated they expect mortgage rates to go down in the next 12 months, while 28% expect them to go up,and 35% expect rates to remain the same.
However, consumer perceptions of homebuying conditions remain overwhelmingly pessimistic, with only 17% of consumers indicating it’s a good time to buy a home. Overall, the full index is up 9.1 points year over year.
“Mortgage rate optimism increased markedly again in January, with a survey-high percentage of consumers anticipating mortgage rate declines over the next year,” said Doug Duncan, Fannie Mae senior vice president and chief economist. “For the first time in our National Housing Survey’s history, a greater share of consumers believe mortgage rates will decrease over the next year, rather than increase. Consumers also expressed greater confidence in their job situations this month, another sign that housing sentiment may continue to improve in 2024.”
Duncan continued: “However, while home affordability may improve if actual mortgage rates continue moving downward, other parts of the affordability equation have yet to ease or improve for consumers. A large majority still think home prices will either increase or stay the same; the ‘good time to buy’ component continues to hover near its historical low; and fewer than one-in-five respondents indicated that their household income was significantly higher year over year, matching a survey low. All in all, while a lower mortgage rate path supports our forecast for a gradual increase in housing demand and sales activity in 2024, until we see a meaningful increase in housing supply, we expect affordability will remain a significant barrier to homeownership for many households.”
Home Purchase Sentiment Index Component highlights
Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased in January by 3.5 points to 70.7. The HPSI is up 9.1 points compared to the same time last year.
Good/Bad Time to Buy: The percentage of respondents who say it is a good time to buy a home remained unchanged at 17%, while the percentage who say it is a bad time to buy remained unchanged at 83%. As a result, the net share of those who say it is a good time to buy remained unchanged month over month.
Good/Bad Time to Sell: The percentage of respondents who say it is a good time to sell a home increased from 57% to 60%, while the percentage who say it’s a bad time to sell decreased from 42% to 40%. As a result, the net share of those who say it is a good time to sell increased 3 percentage points month over month.
Home Price Expectations: The percentage of respondents who say home prices will go up in the next 12 months decreased from 39% to 37%, while the percentage who say home prices will go down decreased from 24% to 22%. The share who think home prices will stay the same increased from 36% to 40%. As a result, the net share of those who say home prices will go up in the next 12 months remained unchanged month over month.
Mortgage Rate Expectations: The percentage of respondents who say mortgage rates will go down in the next 12 months increased from 31% to 36%, while the percentage who expect mortgage rates to go up decreased from 31% to 28%. The share who think mortgage rates will stay the same decreased from 36% to 35%. As a result, the net share of those who say mortgage rates will go down over the next 12 months increased 8 percentage points month over month.
Job Loss Concern: The percentage of respondents who say they are not concerned about losing their job in the next 12 months increased from 75% to 82%, while the percentage who say they are concerned decreased from 24% to 18%. As a result, the net share of those who say they are not concerned about losing their job increased 14 percentage points month over month.
Household Income: The percentage of respondents who say their household income is significantly higher than it was 12 months ago decreased from 20% to 17%, while the percentage who say their household income is significantly lower remained unchanged at 13%. The percentage who say their household income is about the same increased from 67% to 69%. As a result, the net share of those who say their household income is significantly higher than it was 12 months ago decreased 3 percentage points month over month.
The Home Purchase Sentiment Index (HPSI) distills information about consumers’ home purchase sentiment from Fannie Mae’s National Housing Survey (NHS) into a single number. The HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions and complements existing data sources to inform housing-related analysis and decision making. The HPSI is constructed from answers to six NHS questions that solicit consumers’ evaluations of housing market conditions and address topics that are related to their home purchase decisions. The questions ask consumers whether they think that it is a good or bad time to buy or to sell a house, what direction they expect home prices and mortgage interest rates to move, how concerned they are about losing their jobs, and whether their incomes are higher than they were a year earlier.
The National Housing Survey (NHS) is a monthly attitudinal survey, launched in 2010, which polls the adult general population of the United States to assess their attitudes toward owning and renting a home, purchase and rental prices, household finances, and overall confidence in the economy. Each respondent is asked more than 100 questions, making the NHS one of the most detailed attitudinal longitudinal surveys of its kind, to track attitudinal shifts, six of which are used to construct the HPSI (findings are compared with the same survey conducted monthly beginning June 2010).
The January 2024 National Housing Survey was conducted between January 2, 2024 and January 19, 2024.
Mortgage rates continued their downward trajectory at the start of 2024, incentivizing homebuyers to apply for loans. Meanwhile, an easing of the inventory shortage foreshadows the possible return of a stable housing market.
Lock volume increased by 36% between December and January, driven by a 38% seasonal increase in purchase lock volume, according to Optimal Blue’s Originations Market Monitor report. Cash-out and rate-and-term refinance volumes rose 30% and 20%, respectively.
Brennan O’Connell, director of data solutions at Optimal Blue, also noted that January’s year-over-year decline in purchase lock counts, which exclude the impact of changes in home prices, was the lowest seen since May 2022.
The spread between the 10-year Treasury yield and mortgage rates narrowed to 250 basis points in January, 19 basis points less than a month earlier.
The Optimal Blue Mortgage Market Indices’ 30-year conforming rate dropped 4 basis points in January to reach 6.53%. Meanwhile, rates for Federal Housing Administration (FHA) and U.S. Department of Veteran Affairs (VA) loans also fell in January, while jumbo rates moved up.
Overall, conforming products gained market share in January, accounting for 57.3% of total volume. Nonconforming products also rose to comprise 9.7% of the total volume. These include jumbo and nonqualified mortgage (non-QM) loans.
Government-backed loan products posted a setback in market shares in January, with the FHA share dropping to 20.7% and the VA share dropping to 11.7% of total volume. An improving rate environment and an inverted yield curve put a cap on the demand for adjustable-rate mortgages (ARMs) as their market share stayed consistent at slightly more than 5% of total volume.
Each of the top 20 metropolitan statistical areas by share of origination volume experienced monthly increases in rate lock volume. Notably, Las Vegas posted a 90.8% increase in lock volume from December to January.
The average loan amount rose from $349,500 in December to $355,600 in January. And the average home purchase price increased from $435,900 to $444,900 after six straight months of declines.
In AD PRO’s monthly Having a Moment column, AD senior design editor Hannah Martin reports as a weathervane for fads big and small, documenting the patterns and home decor trends she’s clocked in the pages of AD and beyond. Here, enjoy a look back at 2023’s most defining moments.
From nostalgic styles making a comeback to innovative responses to how we live today, there were many stand-out moments in the world of interior design this year. Reviewing them retrospectively, the selections sum up the past year’s tentpole memories—from the design fair debuts we’re still thinking about to the interiors that will inspire well into the new year. Before diving into the design forecasts and color predictions for 2024, take a minute to reflect on the home decor trends that ruled interiors this year.
Forget the subtlety of travertine (last year’s surface du jour) or the always-in elegance of snow-white Carrara. This year was all about an eye-popping specimen—strong veining, unusual colors, and (for the ultra-daring) perhaps a graphic mix of both. Surfaces need not blend into the background; they can say something too. Let’s call it personality marble—that essential dose of pattern that can make any interior pop. Take, for instance, the freestanding onyx bar Roman and Williams turned into a showstopping moment in Gwyneth Paltrow’s Montecito living room, or the all-over marble bathroom of Tinder founder Sean Rad and his wife, Lizzie Grover Rad, conjured by designer Jane Hallworth. Consider it a new kind of conversation piece for the home.
Jaxx Red Marble Side Table
“With a rise in midcentury-modern home remodels and an increased nostalgia for retro furnishings, we’re seeing more customers favoring color,” says Alyssa Wilterdink, senior marketing manager at Kohler, which relaunched a duo of vintage hues for its plumbing fixtures in honor of the American manufacturer’s 150th anniversary this year. Designers are indeed leaning in: Virginia Tupker recently ordered custom colored Water Monopoly sinks in pale pink and blue for a family home in Connecticut; color fiend Frances Merrill installed a cobalt blue sink in the powder room of a Cape Ann, Massachusetts, home; and designer Oliver M. Furth opted for a vintage pink toilet from Kohler for artist Mary Wetherford’s midcentury-modern abode in LA.
Lookin’ Good Shower Set
This year, we witnessed a surge in designers adding color, pattern, and artistic flair to their projects with hand-painted tile. “I’ll tile just about anything,” says interior designer Jessica Jubelirer, who applied the treatment to the hearth, the bathrooms, the baseboards, and, most memorably, inset in the closet doors in a lakeside Wisconsin family home. Meanwhile, in a historic Connecticut family home designed by Virginia Tupker, Delft and Portuguese tiles create a sort of wainscoting in the entryway and bathrooms, as well as fireplace surrounds. In the kitchen of that project, hand-painted tile adds a splash of pattern (drawn from a William Morris motif) as a backsplash. Practical and durable with an artisan flair, hand-painted tile adds visual interest wherever needed. Adds Jubilerer: “Kitchens, bathrooms, and fireplaces can all benefit from its practicality and beauty.”
São Dinis 88 Portuguese Tile
This spring’s design fair circuit hinted at a return to the industrial minimalism, high-tech style of the ’70s and ’80s—an industrial revolution of the interior, if you will. In April we returned from Milan with notes about a minimalism resurgence, with a particular emphasis on industrial materials. Knoll had reissued some of high-tech star Joe D’Urso’s super-adaptable and sleek low tables from the ’80s. Ledongil Workshop’s experimental lighting and furnishings, on display at Ordet gallery, felt like an elevated take on track lighting. And at Drop City, designer Daisuke Yamamoto showcased a collection of clean-lined chairs made of the most frequently trashed construction material: lightweight gauge steel. Indeed, industrial materials and minimalist silhouettes were the protagonists of this year’s debuts.
Hector Small Dome Clip Light
“We’re blowing the dust off moire,” says Raffaele Fabrizio, creative director of Dedar, while showing off the Italian fabric house’s newly expanded Amoir Libre textile. Cue the ripple effect. As of late, a handful of brands and interior designers have redirected their gaze to the historic textile that oozes opulence, repackaging it for today’s quiet luxury. Interior designer Sophie Ashby, who recently wrapped a dressing room in a pale pink Dedar moire, praises the home decor trend for its ability to expand space: “When used in the right way it can really enhance a space, enveloping the interior with tactility whilst also subtly playing with light to make smaller spaces—such as dressing rooms or hidden nooks—appear larger.”
Quadratic Rug in Burgundy by Objects of Common Interest for CC-Tapis
Before there was photography, botanists—or anyone wishing to document flora—created detailed illustrations, known as botanical studies, intended to convey the plant’s physical appearance and other qualities. Unsurprisingly, such botanical studies have long been used to decorate. Lately, the botanical studies trend—a longtime hallmark of traditional, even preppy interiors—is blooming anew. In Lauren Dupont’s Connecticut home, designed by Stephen Sills, a pair of antique botanical prints purchased at auction hang in her dressing room, and in her Palm Beach kitchen, Aerin Lauder mounted a grid of floral prints in the service pantry. Sure, there’s nothing innately groundbreaking about florals when it comes to home decor trends, but perhaps that’s just what gives them eternal life.
Nasturtium Wall Tray
In the bedroom, gone are the piles of decorative pillows and fussy, overstuffed duvets. Back is a simple coverlet that is perfectly happy not to take center stage. You know this super-simple look: a flat coverlet is laid across the bed, folded down a little at the top, and then back over a pair of standard pillows. “It always felt a bit traditional and almost religious,” says Colin King, the stylist and longtime AD contributor, who favors the minimalist bed. “It’s clean and tidy, simple but elegant. It gives the room the feeling you want your bedroom to have—serenity.” The back-to-basics look has been spotted in a restored Brooklyn Heights apartment by Augusta Hoffman, John Legend and Chrissy Teigen’s California bedroom designed by Jake Arnold, and Andre Mellone’s Manhattan sleeping quarters too.
Repose Heavyweight Bedcover
In Germany and Austria between 1815 and 1850, when the Napoleonic wars had ended and a burgeoning middle class emerged, a new style of furniture was created to suit their needs: streamlined versions of more opulent Empire furniture, characterized by strong lines, warm local woods, and simplified shapes—though, notably, not totally stripped of ornament. Biedermeier furniture, as it would later be named, has regained appeal in contemporary interiors for its chameleon qualities. It brings a calculated hit of classicism to a cool, minimalist interior, but it can deliver streamlined modernity to one that is layered and super decorated. These days, says Campbell-Rey’s Charlotte Rey, it’s all about the mix: “It is important to not be afraid to mix them with color and other periods. Perhaps you place a Memphis Milano lamp on top of a Biedermeier sideboard? Being too respectful can make it feel overly polite.”