Uncommon Knowledge
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You’re likely familiar with the story of Robinhood, the outlaw who stole money from the rich and gave it to the poor. Well, you’ll find a similar principle behind the investing app, Robinhood.
The founders of Robinhood aren’t stealing anything, but they do believe that the current financial system doesn’t benefit every American. For that reason, they make it easy for non-traditional investors to get started.
When you sign up for Robinhood, you get access to commission-free trades, a cash management account, and a lot more. Keep reading to learn more about the pros and cons of signing up for Robinhood, as well as whom the app is best for.
Robinhood is a popular investing app that allows users to trade stocks, options, exchange-traded funds (ETFs), and even cryptocurrencies without paying any commission fees. It was founded in 2013 and has since grown to over 22 million users, disrupting the financial industry.
The app is designed to cater to non-traditional investors and make the financial system more accessible to everyone. In this Robinhood review, we’ll explore its features, pros and cons, and determine who it’s best suited for.
When you sign up for a Robinhood account, you’ll get your first stock for free, even if you don’t deposit any funds. Signing up for an account is easy. All you have to do is enter your name, email address, and create a password.
From there, you’ll be prompted to enter more personal information, like your address and Social Security Number. Robinhood is required by federal law to request this information.
After you’ve set up your brokerage account, you’ll outline your investing experience thus far. And to go forward, you will need to fund your account at this point. However, there’s no minimum deposit required to fund the account, so you can always start small and invest more later.
You can connect your bank account to the Robinhood app to make funding your account easier. And there are no fees for transferring money in and out of your account.
User-friendly interface: One of the key selling points of Robinhood is its simple, user-friendly interface. Both the web and mobile versions of the app have been designed to make it easy for users to navigate and trade. The intuitive design allows users to quickly understand their account, monitor their investments, and execute trades with minimal hassle.
Account setup and verification: Setting up an account with Robinhood is a straightforward process. Users can sign up with just their name, email address, and a password. Further personal information, such as address and Social Security number, is required due to federal law. Once the account is set up, users can outline their investing experience and link their bank account for easy funding.
Robinhood offers several features that make it stand out from other investing apps:
Zero commissions: As mentioned earlier, Robinhood has been a pioneer in offering commission-free trading on stocks, options, ETFs, and cryptocurrencies. This feature has helped democratize investing and lower the barriers to entry for non-traditional investors.
Cryptocurrency trading: Robinhood is among the few investing apps that support cryptocurrency trading. Users can trade popular cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Dogecoin. This added functionality allows users to diversify their investments within a single platform.
Mobile app: Robinhood’s mobile app is highly regarded for its ease of use and clean design. Users can quickly view their portfolio, monitor market news, and execute trades on the go.
Account notifications: Users can customize their notification settings to receive alerts about their account performance, significant price movements, and other relevant information.
Daily market updates: Robinhood’s news feed provides users with daily updates on market trends, economic news, and other developments that can impact their investments. This helps users stay informed and make better investment decisions.
In addition to the features already discussed, Robinhood offers various other aspects that make it an attractive choice for investors. Let’s dive into some of these additional features and see how they can benefit users.
Robinhood allows users to participate in extended-hours trading, which includes pre-market and after-hours trading sessions. This feature gives investors the opportunity to act on news and events that happen outside of standard market hours, potentially capitalizing on price movements before the broader market reacts.
Robinhood offers options trading, which involves buying and selling contracts that give investors the right, but not the obligation, to buy or sell a stock at a specific price within a specified period. This feature enables users to implement more sophisticated trading strategies and potentially profit from market volatility, while also providing the flexibility to manage risk according to their preferences.
Robinhood supports a Dividend Reinvestment Program, allowing users to automatically reinvest their dividends back into the underlying stocks or ETFs. This feature can help investors grow their portfolios more efficiently over time by harnessing the power of compounding returns, allowing them to maximize their potential earnings.
In addition to allowing fractional share purchases, Robinhood also enables users to reinvest dividends as fractional shares. This functionality ensures that users can continue to grow their investments, even if they don’t have enough dividends to purchase a full share, making it a valuable tool for long-term wealth accumulation.
Robinhood offers instant deposits for its users, allowing them to access their transferred funds more quickly (up to $1,000). This feature ensures that users can take advantage of investment opportunities without waiting for their funds to settle, providing a more seamless investing experience.
Robinhood prioritizes the security of its users’ accounts and personal information. The platform uses industry-standard encryption and security measures to protect user data. Additionally, Robinhood accounts are insured by the Securities Investor Protection Corporation (SIPC) for up to $500,000, including a $250,000 limit for cash. This protection offers users peace of mind as they navigate the world of investing.
Robinhood offers various educational resources, including articles and guides, to help users improve their investment knowledge and make more informed decisions. These resources can be especially beneficial for new investors looking to learn more about the world of investing, equipping them with the knowledge needed to navigate the markets confidently.
Robinhood’s platform has a social component, allowing users to follow friends, family members, or other investors and view their portfolios. This feature can create a sense of community and motivate users to learn from one another’s investment strategies, fostering collaboration and the sharing of ideas.
There are several advantages to using Robinhood as your investing app of choice:
Despite its numerous benefits, there are a few drawbacks to using Robinhood:
Robinhood Gold is a subscription-based premium service that offers a suite of advanced features designed for more experienced investors. By upgrading to Robinhood Gold, users can access the following benefits:
While standard Robinhood users can access instant deposits of up to $1,000, Robinhood Gold subscribers receive instant deposits depending on their account balance. This feature allows users to invest larger amounts immediately, without waiting for their funds to settle.
Gain access to Level II market data provided by Nasdaq TotalView, which shows real-time bids and asks for stocks. This advanced market data can help users make more informed trading decisions by providing greater transparency into market activity.
Robinhood Gold allows users to trade on margin, providing them with access to additional buying power by borrowing funds from Robinhood. With margin trading, users can potentially amplify their gains, but should be aware that it also increases the risk of losses. It’s essential to carefully consider the potential risks and rewards before engaging in margin trading.
Subscribers receive access to research reports from Morningstar, a leading provider of independent investment research. These reports can help users make more informed decisions by offering in-depth analyses of individual stocks and industries.
Robinhood Gold users have the opportunity to invest in initial public offerings (IPOs) before the stocks are listed on public exchanges. This feature allows users to potentially profit from the early stages of a company’s growth, as well as gain exposure to new and innovative industries.
The cost of Robinhood Gold is $5 per month, which includes access to all the premium features mentioned above. It’s important to note that margin trading also comes with additional fees based on the amount borrowed, so users should carefully consider the costs before utilizing this feature.
Robinhood is best suited for new investors who want an easy-to-use platform to start trading with minimal barriers to entry. It’s also an excellent choice for casual investors who prefer a more hands-off approach, as the app’s features and design make it easy to monitor investments and stay informed on market trends.
For those interested in margin trading, Robinhood Gold is an option worth considering. This premium service costs $5 per month and provides access to additional margin, ranging from $5,000 to $50,000, depending on the user’s deposit amount.
However, Robinhood may not be the best fit for individuals focused on long-term retirement savings, as it doesn’t offer retirement accounts or investment options like bonds and mutual funds. Additionally, more experienced investors seeking advanced research tools and a wider range of account types may find Robinhood’s offerings somewhat limited.
While Robinhood is a popular choice for many investors, it’s essential to consider other factors and alternatives before deciding on an investing platform.
Tax implications: Investing through Robinhood’s individual taxable account means that any capital gains or dividends received will be subject to taxation. Users should be aware of the tax implications of their investments and consider seeking professional tax advice.
Risk management: Investing always carries a degree of risk, and Robinhood is no exception. It’s crucial for users to assess their risk tolerance, diversify their investments, and develop a long-term investment strategy to minimize potential losses.
Alternatives to Robinhood: There are several other investing apps and platforms available that cater to different types of investors. Some popular alternatives include:
Robinhood is a solid option for new investors looking to explore the world of trading without paying commission fees. The user-friendly interface, zero-commission trades, and various features make it an attractive choice for casual investors or those just starting. However, more experienced investors or those with specific account needs may need to consider other brokerage platforms.
By weighing the pros and cons, potential users can decide if Robinhood is the right fit for their investment goals and preferences. With no commitment required and a free stock upon sign-up, there’s little risk in giving Robinhood a try and determining if it meets your investing needs.
Source: crediful.com
Mortgage rates ticked up last week after weeks of declines while applications for home loans dropped in a sign that the housing market continues to struggle despite some recent signs of optimism.
The 30-year fixed rate inched closer to 7 percent for the week ending December 29, according to the Mortgage Bankers Association (MBA). Meanwhile, mortgage applications tumbled by more than 9 percent from two weeks earlier, lenders said.
“Markets continued to digest the impact of slowing inflation and potential rate cuts from the Federal Reserve, helping mortgage rates to stay at levels close to the lowest since mid-2023,” Joel Kan, MBA’s deputy chief economist, said in a statement shared with Newsweek on Wednesday.
The 30-year fixed mortgage ended 2023 at 6.76 percent, more than a percentage point lower than the peak of nearly 8 percent in October, he said.
“The recent decline in rates has given the housing market some cause for optimism going into 2024, but purchase applications have not yet picked up in response, with the overall level of purchase activity 12 percent lower than a year ago,” Kan said.
Economists say that activity in the housing market will ramp up if prices decline, which at the moment are elevated partly due to low supply. The existing homes market is still in the doldrums as sellers are reluctant to give up their low rates for new home loans that could cost them close to 7 percent in interest.
“The housing market has been hampered by a limited supply of homes for sale, but the recent strength in new residential construction will continue to help ease inventory shortages in the months in come,” Kan said.
Recent data shows that private residential construction moved up, according to the U.S. Census Bureau, to nearly $900 billion in November—a jump of more than a percent from the previous month, helped by spending on single-family home building.
“November was the first month in over a year when single-family construction spending rose compared to the year prior,” Yelena Maleyev, KPMG’s senior economist, said in a note shared with Newsweek on Tuesday. “Builders have become more positive about the single-family market as mortgage rates have come down from recent peaks and revived buyers’ interests.”
In a sign that rates may be entering some level of uncertainty, as the market looks to see how many rate cuts the Fed will institute in 2024, the average contract interest rate for 15-year fixed-rate mortgages decreased to 6.26 percent from 6.41 percent in the week ending December 29.
Fed policymakers held rates at 5.25 to 5.5 percent last month for the third time in a row and have suggested that they may cut rates to a possible 4.6 percent in 2024. It’s unclear yet when such cuts could come.
But declining mortgage rates could give a boost to the housing market, with builders feeling optimistic in the new year.
“Construction activity remains robust as strong demand for housing and infrastructure remain a tailwind for builders,” Maleyev said, noting that elevated rates could be a challenge for the sector in 2024. “Spending is expected to end the year on a high, with lower mortgage rates helping revive activity in the housing market.”
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Source: newsweek.com
Since the calendar turned to 2024, the internet has been abuzz with trend reports and home decor predictions that offer a glimpse into what lies ahead in the world of interior design.
For many, these lists may seem overwhelming, especially if you’re not planning to embark on a full-scale renovation this year. But fret not; there are simpler ways to elevate your home by getting creative with a DIY project or two.
Below, we’ll introduce you to 7 home trends experts predict will be big in 2024 and the DIY projects that can help you breathe new life into your living spaces.
Get your toolbox ready. From textured walls to living walls, home renovation experts predict these DIY projects are exactly what you need to elevate your home in 2024.
As more and more of us aspire to make eco-friendly home improvements in 2024, it’s no surprise that using reclaimed and recycled materials is gaining popularity among DIY enthusiasts.
Beyond their environmental benefits, reclaimed and salvaged materials bring a distinctive ‘well-loved’ quality that enriches interior designs with texture and depth. The weathered patina of reclaimed wood, for instance, can seamlessly enhance a home with a modern rustic style, while salvaged fireplaces and reclaimed bricks effortlessly complement modern farmhouse aesthetics. These materials possess a timeless charm, making them an ideal choice for elevating your home’s overall look.
If you’re seeking a quick and manageable DIY project that can be completed in an afternoon, consider exploring your local antique market for a set of vintage drawers and transform them into a unique plant display. Alternatively, give rustic scaffolding boards a fresh lease on life as distinctive kitchen shelves, or reimagine tin ceiling tiles as a one-of-a-kind kitchen backsplash.
For those willing to take on a slightly larger project, a salvaged barn door can be flipped into a statement headboard, and ordinary internal doors and windows can be replaced with antique shutters to achieve a truly bespoke finish.
While the memories of popcorn ceilings and orange peel walls might remind you of outdated interior design trends from yesteryears, wall texture is poised to make a stylish comeback in 2024.
Embrace the classic elegance of a knockdown finish or the rustic charm of limewash paint to infuse subtle drama into your walls. For a touch of warmth, consider decorative plasters like stucco or tadelakt. The beauty of these unique finishes is that they can be applied to your walls through a DIY approach using a trowel or roller, making it a cost-effective way to enhance your home’s ambiance.
And remember, texture doesn’t have to be just tactile. There are plenty of ways to introduce visual texture to your walls. Leading industry names like Benjamin Moore are bringing color-washed walls back into the spotlight this year, and even famous figures like Blake Lively are embracing this trend in their own homes.
‘In 2024, biophilic design and creating healthier living spaces are poised to be prominent trends,’ predicts Christine Marvin, Vice President of Strategy & Design at Marvin. To fully embrace this trend, consider decorating with plants, choosing natural color palettes and materials, or increasing natural light in your living areas.
Kriss Swint, design lead at Westlake Royal Building Products, emphasizes the importance of a closer connection with nature and its elements, citing potential benefits like increased well-being and productivity. ‘Growing concerns about wellness and the environment are driving demand for backyard improvements and the integration of nature into design. This includes features like green roofs, large windows, and living walls.’
wooden kitchen cabinetry is predicted to dominate kitchen trends this year.
However, before you jump into a full-scale kitchen remodel, consider that you can revamp this space without breaking the bank by resurfacing or refinishing your existing cabinet fronts.
Rather than reaching for your hammer right away, consider stripping paint from wood cabinets you already have to reveal the material beneath. Alternatively, you can replace your current kitchen cabinet fronts with custom-made ones that perfectly fit your space. Consult a local woodworker for bespoke cabinetry tailored to your kitchen’s dimensions or explore options like preloved wooden cabinet fronts available in salvage yards or online marketplaces.
‘A great DIY hack for achieving premium quality without overspending is using Ikea cabinets combined with custom fronts,’ says Archie Tkachoff, Founder of Arteum.design. ‘This approach is not only cost-effective but also versatile, allowing for the application of custom doors on new and existing cabinets.’
walk-in pantry?
‘In 2024, we expect to see pantries being upgraded with intelligent organization solutions, providing more space and functionality,’ predicts Laurel Vernazza, Home Design Expert at The Plan Collection. ‘When designed with floor-to-ceiling storage, the walk-in pantry can be used to conceal air fryers, coffeemakers, and larger appliances such as dishwashers, with plenty of room for pots and pans, spices, and dry goods’.
Simply clear the kitchen closet and assess its layout. Install adjustable shelving for better storage, add hooks or racks for spices and dried goods, and improve visibility with an overhead light.
2-Tier Stainless Steel Lazy Susan
Butterfly Ginkgo K-Cup Carousel
Royal Check Large Enamel Canister
The classic built-in bookshelf remains a popular choice for 2024, and it’s easy to see why. With just a modest amount of DIY expertise, you can easily turn an ordinary bookshelf into a faux built-in feature that instantly elevates your home.
Start by measuring your space and acquiring the right number of standalone bookcases for the job. We recommend options such as Ikea’s Billy bookcase or Wayfair’s Lagner bookcase, as they are well-suited to this task. Securely anchor these bookcases to the wall, ensuring they are level and perfectly aligned.
To achieve that coveted built-in appearance, add a plywood surround, crown molding, or decorative trim that complements your room’s style. After carefully caulking and sanding any rough edges, apply paint or stain to the bookshelves, allowing them to seamlessly blend into their surroundings.
Home renovation trends are typically less transient than paint trends, such as the color of the year, and can significantly improve the aesthetic and functionality of your home.
Source: homesandgardens.com
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“My dad always said to me, ‘Work until your bank account looks like a phone number’ so I did. Account balance: $9.11.” You can work harder, or you can work smarter. (I have severe doubts about the validity of this clip; it gave me the willies watching it.) Swimming is certainly a competitive sport. Do you have competitors? Most businesses do. Which is a reason that hotels offer free ice, thanks to a hotel chain that began in Memphis, TN. If the Mortgage Bankers Association is right, and volume does pick up some in 2024, that doesn’t mean the competition to do that business is going to go away. Numbers game. 5 calls, 25 a week, one closed loan $4k, two loans $8k. At these rates, less competition. If rates come down, competition for inventory just increases. (Today’s podcast can be found here, and this week’s is sponsored by the STRATMOR Group, the data-driven mortgage advisory. At STRATMOR, insights and knowledge are applied to guide mortgage clients to make sound strategic decisions and take actions that improve their success. Hear an interview with the STRATMOR Group’s Garth Graham on if industry forecasts for a better market should lead to industry optimism.)
Broker and Lender Programs and Software
Servicers know how much work it takes to release a lien once a mortgage has been paid off. That’s why they’re turning to the new Automated Lien ReleaseSM (ALR) capability in the ICE MSP® servicing system to help lighten the load at the end of a loan. ALR combines document creation and automated workflows to streamline the lien release process. It helps with eSigning and eRecording where available (and prints the release package for wet sign where it’s not) to help servicers cut through the delays and release liens faster. Read the press release to see how you can start releasing fully paid liens in days instead of weeks.
Truv is now an approved third-party service provider supporting Freddie Mac Loan Product Advisor® asset and income modeler (AIM) Revolution Mortgage estimates that they can save up to $20,000 in cost on verifications with TRUV over competitors. “Let’s talk about our documentation costs and those giant monopolies that are out there and laughing at customers and increasing prices because they have a particular monopoly. You want to lower your manufacturing costs” said Femi Ayi, EVP Operations. Contact TRUV today to discuss how we can help you with your income, employment, insurance, and asset verifications. Come join us!
Be Wary of Relying on Interest Rate Predictions
I am asked all the time, “Hey Rob, where do you think rates will be in six months?” My answer, after I say that I can’t even predict where I’m going to have lunch tomorrow, is always the same, “Higher, or lower, or possibly the same.” Or sure, one can have a prediction until a ship becomes stuck in the Suez Canal, a ship is attacked in the Red Sea, or a pandemic occurs. A recent STRATMOR blog is titled, “Interest Rates are Like the Weather? Or Like Signs of the Zodiac?”
The interest rate markets have a way of humbling almost all the ‘experts’ and the very first thing you learn in Secondary Marketing is that you shouldn’t take a view on where rates are headed because half the time, you’re wrong anyway. In Q4 of 2022 the arm-chair prognosticators were predicting that we’d see rates come down by the end of 2023. After reaching a peak in October, Treasury rates did come down to where they were at the beginning of 2023. But mortgage rates were well into the 7 percent range.
The Federal Reserve, in its attempts to control inflation and cool a very strong economy, raised fed funds several times in 2023. Throughout the year, however, we heard, inside the world of mortgage banking, opinions expressed that rates will not only come down, but when to expect this to happen. Based upon what data, one should ask, are their views speculative, biased, or just hopeful?
I would challenge these prognosticators as to the reasons why mortgage rates are positioned to fall. What leads them to predict that? I’m sure some opinions are based on fundamentals: Fed raises rates to control inflation, money is taken out of the economy, the economy cools, Fed cuts rates, and mortgages come down to some predicted level. A lot of the predictions I see are not rooted in actuality, but rather rooted in exuberance for mortgage banking.
In the summer of 2023, little of the macro data even hinted at a reduction of short-term interest rates. Inflation, which has been grinding lower, was a tad north of 4 percent with the Federal Reserve’s target set at 2 percent. Economists have modeled that unemployment would need to reach as high as 7 percent in order for inflation to come down to 2 percent… Not a pretty picture. Remember, when an economy ‘slows’ jobs are not created, historically they’re lost.
The Fed was relatively “hawkish” in its monetary policy for the remainder of 2023 until the end. Anyone predicting where interest rates will be in the future would need to start by predicting where the Federal Funds rate NEEDS to be in order to see inflation that’s appealing to the Fed, and then ultimately, HOW LONG rates needs to remain there; when is it warranted to reduce borrowing rates under recessionary fears? These are two almost impossible questions to answer since the number of variables that you need to get right, coupled with unpredictable world events, play such a strong role in forecasting interest rates.
A year from now, rates will either be higher, lower or the same. So, focus on your products and services!
Capital Markets
Ever wondered how to hedge a mortgage pipeline? Hedging one’s mortgage pipeline typically produces the greatest return over long-term macroeconomic cycles, which is why it is considered an essential step in the growth of a mortgage lender. In MCT’s whitepaper, Mortgage Pipeline Hedging 101, their experts explain what hedging is and why it is a valuable strategy for maximizing profitability in the secondary market. The whitepaper also reviews information on moving to mandatory loan sales, the strategy of hedging, the benefits of hedging, and how to determine if you are ready. Download the whitepaper or join MCT’s newsletter for upcoming releases.
Turning to interest rates, what’s that you say? Markets have gotten ahead of the Fed again? Gasp! Yes, markets aren’t looking all that cheerful in the new year. I don’t put much opinion in here, but I’d say it’s because of investors’ own doing. The added potential for interest rates to stay high for some time is forcing investors to continue to unwind optimistic trades placed in late 2023. The Federal Reserve’s policy makers poured water on predictions of early 2024 interest rate cuts, revealed the minutes from the most recent Federal Open Market Committee meeting, with several voting members seeing the potential for the fed funds rate range to stay at a peak level for longer than the market expects.
Policymakers did acknowledge that we are probably at the peak of rates and that projections show cuts by year-end. Richmond Fed President Barkin cautioned that the potential for more rate hikes remains alive, called a soft landing “increasingly conceivable but in no way inevitable,” and added that any decision on a March cut is a “long way away.” Staff projections point to rate cuts by the end of 2024, but officials do not seem to be supportive of a series of cuts at this time.
The minutes from the Federal Open Market Committee meeting hinted at hard landing concerns amongst board members while recognizing that they could “face a tradeoff between its dual-mandate goals in the period ahead.” Fortunately, there were more indications of optimism about inflation, which is supported by the latest jobs data showing cooling.
U.S. job openings fell in November to 8.79 million in November, the lowest level since early 2021 as fewer workers voluntarily quit and the number of hires fell. People who voluntarily left their jobs as a share of total employment fell to the lowest point since September 2020, signifying that Americans are feeling less confident in their ability to find new jobs or better paying jobs in the current market.
Separately, we also learned yesterday that the December ISM Manufacturing PMI indicated an ongoing contraction in the manufacturing sector, but at a slower pace than the previous month. December marked the 14th straight month the PMI reading has been in contractionary territory. The report was not devoid of good market news, as the Prices Index reflected a further easing of inflation pressures.
Today’s calendar sees some early labor market indicators ahead of tomorrow’s payrolls report. Markets have already received December job cuts from Challenger, Gray & Christmas (34,817 cuts in December, down 24 percent from the 45,510 cuts announced in November) as well as ADP employment for November (164k, higher than expected), and initial (202k, down from 218k) and continued (1.855 million) jobless claims. Later today brings the final December S&P Global services PMI, Treasury announcing the details of next week’s mini-Refunding (consisting of $52 billion 3-year notes, $37 billion reopened 10-year notes, and $21 billion 30-year bonds), and Freddie Mac’s Primary Mortgage Market Survey. We begin the day with Agency MBS prices worse .125-.250, the 10-year yielding 3.98 after closing yesterday at 3.91 percent, and the 2-year at 4.36 after a spate of employment data.
Employment
It’s a new year and Merchants Bank, is off and running, continuing to leverage its diversified business model to grow market share and assist Merchant’s lending partners. Merchants Bank’s Correspondent channel, offering Non-Delegated and Delegated options, recently hired Liberty Tribe as Sales Executive to help grow TX and the Mid South Region. Liberty along with Dan Hastings, CMB, AMP cover the Mid-South (TX, LA, AR, MO, OK, KS). In addition, Merchants is expanding its Financial Institutions channel by adding a Mini-Correspondent offering to their TPO Wholesale platform. If you are interested in learning more, contact Rob Wilson. On the Retail front, Merchants Bank continues to grow there as well and if you are looking for stability, support and products, they want to hear from you. Contact Ron Berry for more information. Their LO centric platform along with the strength and balance sheet of the bank allows them to expand market share in their regional markets.
Planet Home Lending’s new Vice President, Construction Sales Melony Harpe is paving the way for Planet MLOs to increase their construction loan volume in 2024. Interested in building your construction business? Join Planet and you’ll have support for calls with builders, resolving construction issues, and educating stakeholders. “I want MLOs and retail branches to feel confident and supported in their construction lending efforts,” Harpe said. “My role is to give MLOs the tools and resources needed to navigate the complexities of construction lending and expand their connections with builders.” To lay the foundation for a better 2024, contact VP of Talent Peter Briggs or 949-202-8213; all inquiries will be held in strict confidence.
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Source: mortgagenewsdaily.com
Mortgage rates barely changed this week, but experts still expect further declines in 2024.
The average rates for 30-year loans inched up to 6.62% from 6.61% a week ago, according to tracking by Freddie Mac on Thursday. Aside from this week’s minuscule rise, rates have been declining for weeks since late October, falling nearly 117 basis points from a 12-month high of 7.79% at the end of October.
Those recent declines have boosted homebuyers’ ability to purchase homes, but further affordability improvement could be curbed by a continual supply shortage, especially if lower rates bring back sidelined demand.
“While mortgage interest rates are expected to overall decline in 2024, minor fluctuations in weekly mortgage interest rates are to be expected,” Jessica Lautz, National Association of Realtors’ deputy chief economist, wrote to Yahoo Finance.
“The biggest demand is likely to come from those who had been priced out of the homebuying market. For spring, there will likely be competition among the steady share of all-cash homebuyers and first-time buyers trying to edge in,” Lautz added.
Read more: Mortgage rates decline. Is 2024 a good time to buy a house?
Rate drop improving affordability
The national median monthly mortgage payment on purchase applications fell by $62 to $2,137 in November from the month prior, according to the Purchase Application Payments Index (PAPI).
“Homebuyer affordability improved in November, with a decline in mortgage rates, providing relief to prospective homebuyers,” Edward Seiler, MBA’s associate vice president, said in a press release. “MBA expects that affordability conditions will continue to improve as mortgage rates decline, which should generate increased demand heading into the spring homebuying season.”
A decrease in PAPI — indicating stronger affordability — can be attributed to a reduction in borrowed loan amounts, a drop in mortgage rates, and an increase in incomes.
However, homebuyers’ ability to afford homes is still lower than a year ago. Mortgage applicants are paying $160 more, or 8.1% higher, each month compared to the national median mortgage 12 months ago. While rates didn’t increase substantially this week, homebuyers today are still paying 14 basis points more than 12 months ago, when the average 30-year mortgage rate was 6.48% on Jan. 5, 2023, according to Freddie Mac rates archive.
Read more: How to buy a house in 2024
Many experts are predicting further rate drops in 2024, though. As the US economy is expecting a soft landing — where inflation curbs without a national recession — rates are poised to drop to around 6% or potentially lower by the end of 2024.
“If inflation continues to show signs of improvement and the bond market remains less turbulent than during much of 2023, mortgage rates should at the very least stabilize this year, if not show sustained declines,” Jacob Channel, LendingTree’s senior economist, predicted for 2024 housing and economic market.
Affordability curbed by lack of listing
Housing experts warned that limited inventory could restrain affordability improvement achieved by declining rates. Without adequate supply, sidelined prospective buyers returning to the market could outpace the housing supply and increase competition.
“Homeowners may still be reticent to move from low interest rate mortgages, which may be in the 2.5% to 3.5% range, until they are in a situation where a life or job change occurs forcing them to reconsider their living situation,” Lautz said.
Total inventory of unsold existing homes, not including new constructions, declined 1.7% from the previous month to 1.13 million units at the end of November, according to the National Association of Realtors. This is the equivalent of 3.5 months of supply on the market, nearly 2.5 months lower than what experts believe to be a balanced and healthy market of 6 months.
For context, today’s existing home inventory levels are relatively close to the record low of 860,000 units in January 2022 compared to the record high of 4.04 million units in July 2007.
But inventory could still see a slight uptick as more sellers reach their “tipping point,” or the rate level at which homeowners are willing to sell their homes. Most homeowners — nearly 92% — have rates below 6%, Redfin says. But as rates drop to 6% or below, more owners could be open to selling. This would reverse the mortgage rate lock phenomenon that slowed the housing market in 2023 when most homeowners refrained from selling to keep their lower-than-market rates.
However, experts don’t expect a significant jump in inventory that could bring down home prices, as roughly 4 in 5 homeowners still have rates below 5%, and one-quarter have rates below 3%.
“We are not going to see a big turnaround,” Danielle Hale, Realtor’s chief economist, said on 2024’s affordability challenges during NAR’s Real Estate Forecast Summit. “But I do think we are going to see baby steps in the right direction.”
Rebecca Chen is a reporter for Yahoo Finance and previously worked as an investment tax certified public accountant (CPA).
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Source: finance.yahoo.com
Whether you need to finish last-minute work tasks before a vacation or connect with loved ones after being away, you might be needing an in-flight Wi-Fi signal. However, if you’re flying Hawaiian Airlines to or from the Aloha State, you might be in for a surprise.
Here’s what you need to know about Hawaiian Airlines Wi-Fi and the airlines that offer coverage over the Pacific Ocean.
Unfortunately, Hawaiian Airlines planes aren’t equipped with Wi-Fi yet, and that includes transpacific and inter-island flights.
However, the carrier has struck a deal with Starlink to provide broadband wireless internet to flyers in the future.
Hawaiian Airlines is planning to equip its Airbus A330, Airbus A321 neo and Boeing 787-9 aircraft with complimentary high-speed Wi-Fi run on a satellite network. Hawaiian Airlines internet service will be available on flights between the islands as well as long-distance flights to the mainland U.S., Asia and Oceania.
“When we launch with Starlink we will have the best connectivity experience available in the air,” Hawaiian Airlines CEO Peter Ingram said in 2022. “We waited until technology caught up with our high standards for guest experience, but it will be worth the wait. Our guests can look forward to fast, seamless and free Wi-Fi to complement our award-winning onboard Hawaiian hospitality.”
At this point, it’s unclear exactly when Starlink internet will be available aboard Hawaiian Airlines planes, but it’s supposed to happen sometime this year. Having said that, in-flight entertainment is available for passengers to stream on their personal device through a self-contained in-flight network.
Even though there’s no Hawaiian Airlines Wi-Fi, you still can stream in-flight entertainment to your personal device in two ways: a mobile app or an internet browser. You can watch new and classic films as well as TV shows on your phone, tablet or laptop.
Download the Hawaiian Airlines app to your mobile phone or tablet.
Once aboard, switch your phone to airplane mode and connect to the “Movies on HawaiianAir” network.
Open the Hawaiian Airlines app, select “More” and then “In-flight entertainment.”
Connect to the “Movies on Hawaiian” network.
Open your internet browser and type “www.hawaiianairlineswifi.com.”
Choose an option and watch.
The islands of Hawaii are located about 2,400 miles from the mainland U.S., so it’s no wonder that the signal over the Pacific Ocean isn’t that strong.
Below are some of the airlines that offer Wi-Fi on flights to Hawaii. Still, when in doubt about investing in a Wi-Fi pass, ask a flight attendant whether the internet signal is reliable.
American Airlines
American Airlines offers satellite-based Wi-Fi on most aircraft in its fleet, meaning you might have luck getting coverage on your flight to the Aloha State. An in-flight Wi-Fi pass starts at $10 and goes up from there.
To check whether your specific flight offers Wi-Fi, you can check its status by entering the flight number and date of travel on this page.
Delta Air Lines
Delta Air Lines and T-Mobile have been rolling out free in-flight Wi-Fi to SkyMiles members, which is available on about 600 domestic aircraft as of last July.
Full availability on the global fleet is expected by the end of 2024. A pass costs $5 to $19 on aircraft that aren’t yet equipped with free Wi-Fi.
United Airlines
United Airlines has four in-flight internet providers: Gogo, Panasonic, Thales and Viasat. Aircraft equipped with Panasonic Wi-Fi provides the most coverage, which includes areas over the Pacific Ocean.
The following aircraft are equipped with Panasonic Wi-Fi:
United Aircraft with Panasonic Wi-Fi
Select Airbus 319.
Airbus 320.
Select Boeing 757-200.
Select Boeing 757-300.
Boeing 767-300ER.
Boeing 767-400ER.
Boeing 777-200.
Boeing 777-200ER.
Boeing 777-300ER.
Boeing 787-8
Boeing 787-9.
Boeing 787-10.
United Wi-Fi on domestic flights costs $8 or 800 miles for MileagePlus members and $10 for passengers who aren’t enrolled in its frequent flyer program.
Although Hawaiian Airlines will be launching Starlink wireless service on its aircraft, it’s not available to passengers at the moment.
The only option you have for now is to connect to an in-flight entertainment network and stream content from your personal device. If you want to watch something else, we recommend downloading episodes of your favorite show to watch on the plane.
(Top photo courtesy of Hawaiian Airlines)
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:
Source: nerdwallet.com
Michael Mincey / iStock.com
Mortgage rates began dropping steadily in the last months of 2023, down to 6.61% for a 30-year, fixed-rate loan in the last days of the year, according to data from Freddie Mac.
But 85% of American homeowners remain locked into pre-pandemic mortgage rates of 5% and lower, making them hesitant to sell their home only to purchase another when both home prices and interest rates remain elevated.
Mortgage experts, however, predict that the market may shift in 2024, although not as dramatically as some would hope.
“Mortgage rates will fall to about 6.6% by the end of 2024. The gradual decline in rates combined with the small dip in prices will bring homebuyers some much-needed relief,” Redfin Chief Economist Daryl Fairweather told USA Today.
Jeff Taylor, founder and managing director at Mphasis Digital Risk, agreed that 30-year fixed rates will stay will in the “mid-6%” range.
National Association of Realtors chief economist Lawrence Yun made a bold prediction regarding the market. “A marked turn can be expected as mortgage rates have plunged in recent weeks,” he said.
However, even with interest rates falling, the lack of single-family homes on the market may keep prices elevated.
“While single-family housing starts have steadily increased throughout 2023, it will take years of accelerated new home construction to narrow the supply shortage gap from more than a decade of underbuilding,” Odeta Kushi, Deputy Chief Economist at First American, told USA Today.
Further, with existing homeowners refusing to sell because interest rates won’t match what they secured pre-pandemic, the housing shortage is destined to continue through 2024.
The rising costs of home insurance is also deterring new homebuyers, according to a recent Newsweek article. Real estate investors told the publication that it may be harder to get a mortgage in states like Florida, which is prone to extreme weather such as hurricanes, floods and tornadoes. If you can’t insure a home, you can’t secure a mortgage for its purchase. Current homeowners may experience rate hikes, too, but once a home is insured, it’s easier to maintain a policy than to write a new one.
California, Louisiana, Texas and Colorado also experienced rate hikes in 2023, as previously reported by GoBankingRates. Other states may be susceptible to future rate hikes, according to HUB Private Client research. These states include Minnesota, Missouri, Indiana and South Dakota, which is alarming as they were not previously considered areas at high-risk of weather-related claims.
But even with rising costs, 2024 could be the first year the U.S. sees an uptick in new home construction, as predicted by Robert Dietz, Chief Economist for the National Association of Home Builders.
“Due to low existing inventory, new construction has increased to approximately one-third of total single-family inventory in recent months when historically it was only 10% to 15%,” he said.
After declines in 2022 and 2023, the increase in new construction could help alleviate some of the housing shortage. But even an increased inventory of new homes won’t make a significant difference in the housing market for 2024. “Home prices keep marching higher,” Yun told USA Today. “Only a dramatic rise in supply will dampen price appreciation.
More From GOBankingRates
Source: gobankingrates.com
Mortgage rates over the last seven days followed a split path, but an important rate are now higher. Average 15-year fixed mortgage rates didn’t move, while average 30-year fixed mortgage rates grew.
For variable rates, the 5/1 adjustable-rate mortgage slid lower.
Since early November, the average rate for a 30-year fixed mortgage started making sustained drops, largely due to the Federal Reserve’s less restrictive monetary policy, cooling inflation and other economic data. The most common home loans are now in the 6% to 7% range.
Yet even with the recent decline in rates, the mortgage market always slows down toward the end of the year. And rates aren’t compelling enough to upset holiday plans to do home shopping, according to Keith Gumbinger of HSH.com. “After the holidays, if rates are still in this range, we’ll likely see a little seasonal pent-up demand by borrowers expressed in January,” Gumbinger said.
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.
If you’re in the market for a home, check out how today’s mortgage rates compare to last week’s. We use data collected by Bankrate to track daily mortgage rate trends. This table summarizes the average rates offered by lenders across the country:
Loan type | Interest rate | A week ago | Change |
---|---|---|---|
30-year fixed rate | 7.05% | 7.00% | +0.05 |
15-year fixed rate | 6.41% | 6.41% | N/C |
30-year jumbo mortgage rate | 7.12% | 7.06% | +0.06 |
30-year mortgage refinance rate | 7.21% | 7.16% | +0.05 |
Rates as of January 3, 2024.
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.
The average 30-year fixed mortgage interest rate is 7.05%, which is an increase of 5 basis points from one week 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.
The average rate for a 15-year, fixed mortgage is 6.41%, which is the same rate compared to a week 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.
A 5/1 ARM has an average rate of 6.39%, a slide of 2 basis points 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.
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.
At the start of the pandemic, mortgage rates were near record lows, around 3%. That all changed as inflation began to surge and the Fed kicked off a series of aggressive interest rate hikes, which indirectly drove up mortgage rates. Now, nearly two years after the first rate increase in March 2022, mortgage rates are still more than double what they were just a few years ago.
The central bank has kept interest rates steady since late July, and mortgage rates are just now starting to see sustained decreases. With the Fed extending its rate-hike pause in December, experts are waiting for the first rate cut. It may be months before that happens, but as long as inflation continues to moderate, mortgage rates should stabilize and start inching even lower in the coming months.
While mortgage forecasters base their projections on different data, most predict rates will remain near or above 7% for the rest of 2023. Here’s a look at where some of the major housing authorities expect average mortgage rates to land at the end of the year.
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.
Source: cnet.com
Citi credit cards provide a host of benefits, including some generous points and miles earning opportunities (depending on the card you have).
But, when it comes to travel insurance, let’s just say it’s not necessarily Citi cards’ strong suit.
Still, there are Citibank travel insurance benefits you should know about to ensure you use the right card when paying for your next trip. Here are the primary benefits associated with Citi card travel insurance.
Only two Citi cards have travel insurance, and each one has a different set of benefits.
If you use either of the two Citi credit cards listed above to pay for a car rental, Citi travel insurance will protect any damages to a rental car up to $50,000.
This amount will cover the cost of repairs or the cash value of the car, whichever is lower. It applies anywhere you rent a car — there are no geographic limitations — as long as the rental period is no longer than 31 days. Citibank travel insurance covers accidental damage, theft, vandalism or a natural disaster, and any necessary towing costs.
🤓Nerdy Tip
Citi’s rental car insurance is secondary when renting a car within the U.S., but if you’re renting outside of the country, it switches to primary coverage.
With secondary insurance, you need to rely on any other insurance coverage you have before Citi’s car rental insurance kicks in. Primary insurance, alternatively, will be the first line of coverage you have.
Coverage wouldn’t apply if you rent the car to someone else or operate a rental car as a rideshare vehicle. It also only covers the car, not any personal injuries that might result from an accident.
There are several types of vehicles that are excluded from coverage. These include:
Trucks, pickup trucks, trailers, full-size vans on a truck chassis or recreational vehicles like campers and off-road vehicles.
Motorcycles or motorized bikes.
Commercial vehicles or cargo vans.
Any vehicle with fewer than four wheels.
Antique vehicles older than 20 years or that have not been made in the past decade.
Limousines.
Sport-utility trucks or open, flat-bed trucks.
Any vehicle that retails for over $50,000.
When driving in the U.S., roadside assistance is available for Costco Anywhere Visa® Card by Citi cardholders by calling 866-918-4670.
Roadside assistance is valuable in the event of an accident, loss of fuel or other vehicle malfunction. Keep in mind that you would still have to pay for the assistance (like a tow truck, for example), but this benefit makes it easy to reach someone with one phone call.
Citi card provides access to similar assistance as a membership program like AAA. The difference is that AAA’s annual fee covers roadside assistance fees while Citi’s coverage doesn’t; it solely provides access to someone who can help you for a reduced rate.
The Costco Anywhere Visa® Card by Citi includes accident insurance, which covers the cardholder or family members if they are injured or killed when traveling on a common carrier (any vehicle that is licensed to carry passengers like a bus, plane, cruise ship or train).
You will need to have used the Citi card to cover the entire cost of the travel on that common carrier for the benefit to apply. The maximum coverage is $250,000.
The Costco Anywhere Visa® Card by Citi card provides access to a 24/7 concierge to help you with a disruption to your trip. This can include medical assistance, referrals to a doctor or legal help. It can also help if you need to adjust travel plans.
Just remember, you’ll be responsible for paying for any services used, but the call is toll-free.
Only available for the Citi® / AAdvantage® Executive World Elite Mastercard®, this luggage protection provides coverage if your checked bag is stolen, lost or damaged.
The insurance covers as much as $3,000 per person ($2,000 for New York residents), but only kicks in if you use the card or American AAdvantage miles to pay for the trip.
If a covered traveler has a medical emergency or dies, the Citi® / AAdvantage® Executive World Elite Mastercard® coverage can provide reimbursement for up to $5,000 in eligible nonrefundable expenses.
You would need to use the card or American AAdvantage miles to pay for the trip.
Another benefit that’s reserved only for the Citi® / AAdvantage® Executive World Elite Mastercard® is trip delay protection. This coverage kicks in if your trip is delayed by at least six hours, and offers reimbursement for expenses incurred during the delay, up to $500 per trip.
This would include reasonable purchases like hotel stays, rental cars and meals.
Both cards include rental car coverage, but beyond this, each has its own set of benefits. Depending on which one you hold, it may include coverage like trip delay protection or roadside assistance.
People hold Citi cards for many reasons, including the ability to earn transferable Citi ThankYou Points. But, the travel insurance benefits are somewhat limited. If you have a Citi card, review the travel insurance perks before you take off to understand your coverage.
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:
Source: nerdwallet.com
Wed, Jan 3 2024, 5:21 PM
Proof of Data Dependent Concept
The first two days of the new year were shaping up to paint an unpleasant picture for the bond market in which the strong rally in Nov/Dec faced the prospect of technical correction. That risk remained through the first few hours this morning, but things began to change after the JOLTS data (not at first, but eventually!). As losses turned to gains in the afternoon we had fresh proof of concept for the prevailing “data dependent” narrative for rates. JOLTS wasn’t even bad, per se, it was merely the first time we’ve seen consecutive months under 9m since job openings were still on the way up in 2021. At the risk of reiterating the obvious, Friday’s jobs report will tell us even more about data dependency. On a side note, Fed Minutes helped–primarily due to the nod to an eventual winding down of quantitative tightening (something that came through better in today’s minutes than in the press conference 3 weeks ago).
09:42 AM
More overnight weakness. 10yr up 5.2bps at 3.993. MBS down a quarter point.
10:19 AM
brief recovery after 10am data, but now back to weaker levels. 10s up 4.7bps at 3.988 and MBS down 3/8ths.
01:52 PM
Nice mid-day rally. 10s down 2.3bps to 3.918. MBS now unchanged on the day.
02:27 PM
Gains maintained after Fed Minutes. 10yr down 3.2bps at 3.909. MBS up 1 tick (0.03).
Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.
Source: mortgagenewsdaily.com